- PayPal's stock is significantly undervalued following a 77% drop from its July 2021 peak.
- New strategic initiatives under CEO Alex Chriss aim to revitalize growth and profitability.
- Analysts' forecasts suggest substantial upside potential, with an average price target of $93.63.
PayPal (NASDAQ: PYPL) is navigating through a complex post-pandemic landscape, experiencing a notable drop of 77% from its high in July 2021. In response, the company, under the new leadership of CEO Alex Chriss, is spearheading strategic initiatives to regain its competitive edge. These initiatives include the launch of innovative products such as Fastlane and CashPass, as well as enhancements to its merchant platform with PayPal Open. Despite current challenges, PayPal's focus on profitability and maintaining its foothold in the payment industry positions it as a potentially lucrative investment opportunity, especially given its currently discounted valuation.
Wall Street Analysts Forecast
In terms of analyst insights, PayPal Holdings Inc (PYPL, Financial) is surrounded by a positive consensus outlook. Based on one-year price targets from 35 analysts, the average target price sits at $93.63, with projections spanning from a high of $125.00 to a low of $70.00. This average target suggests a potential upside of 43.71% from PayPal's current price of $65.15. For further detailed estimates, investors can visit the PayPal Holdings Inc (PYPL) Forecast page.
The consensus recommendation from 45 brokerage firms positions PayPal Holdings Inc (PYPL, Financial) at an average rating of 2.3, which signifies an "Outperform" status. This rating is derived from a scale of 1 to 5, where 1 indicates a Strong Buy and 5 signifies a Sell. The favorable rating underlines the potential that analysts see in PayPal amidst its strategic changes.
According to GuruFocus estimates, PayPal Holdings Inc (PYPL, Financial) is projected to have a GF Value of $95.34 in one year, implying a notable upside of 46.34% from the current market price of $65.15. This GF Value reflects GuruFocus' approximation of what the stock’s fair market value should be based on historical trading multiples, past business growth, and future business performance projections. More in-depth data can be accessed on the PayPal Holdings Inc (PYPL) Summary page.
