PayPal's Competitive Pressures In Online Payments Are Increasing: Goldman Sachs
Portfolio Pulse from Anusuya Lahiri
Goldman Sachs analyst Will Nance has assumed coverage of PayPal Holdings (NASDAQ:PYPL) with a Neutral rating and a price target of $69. Nance highlighted increasing competitive pressures in the online payment space, particularly from mobile and web-based wallets. Despite some room for cost management and modestly above-consensus estimates, Nance remains cautious about PayPal's long-term competitive positioning. PayPal shares are near their lowest level since 2017, trading at $59.75.
June 24, 2024 | 5:18 pm
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NEUTRAL IMPACT
Goldman Sachs analyst Will Nance has assumed coverage of PayPal with a Neutral rating and a price target of $69. Nance highlighted increasing competitive pressures from mobile and web-based wallets, which could impact PayPal's branded checkout experience. Despite some room for cost management and modestly above-consensus estimates, Nance remains cautious about PayPal's long-term competitive positioning.
The Neutral rating and price target of $69 reflect a balanced view of PayPal's prospects. While there is room for cost management and modestly above-consensus estimates, the increasing competition from mobile and web-based wallets poses a significant challenge. This could lead to further multiple compression and impact PayPal's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100