This PayPal Analyst Expects 2024 To Be A 'Transition Year,' Foresees Stock Range-Bound Due To Valuation Concerns
Portfolio Pulse from Surbhi Jain
PayPal Holdings Inc (NASDAQ:PYPL) saw its shares decline after Mizuho downgraded the stock from Buy to Neutral and lowered the price target from $72 to $65. BofA Global Research is looking forward to PayPal's Q4 results and 2024 guidance from new leadership, maintaining a Neutral rating with a $66 price objective. Analysts expect a year-over-year decline in transaction profit growth but at a slower rate than Q3. The stock is expected to be range-bound in the short term due to valuation concerns and weak sentiment.
January 17, 2024 | 1:17 pm
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PayPal downgraded by Mizuho from Buy to Neutral with a price target cut from $72 to $65. BofA maintains a Neutral rating with a $66 price objective. Shares fell 4.18% to $58.45, expected to be range-bound due to valuation concerns.
The downgrade by Mizuho and the reduced price target, along with the anticipation of Q4 results and 2024 guidance, have negatively impacted investor sentiment. The stock's decline on Tuesday reflects these concerns, and the analyst's view of a range-bound trajectory due to valuation issues suggests a negative short-term outlook.
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