PayPal Praised by Analysts After Stronger-Than-Expected Earnings
- Date: 07-May-2021
- Source: CNBC
- Sector:Financial Markets
- Country:Middle East
PayPal Praised by Analysts After Stronger-Than-Expected Earnings
PayPal (PYPL) - Get Report shares wavered on Thursday after analysts reacted positively to the financial-services titan's stronger-than-expected earnings for the first quarter.
The San Jose, Calif., company reported what it said was the strongest first quarter in its 23-year history, with net income leaping on 31% higher revenue and net new active accounts rising by 14.5 million.
The stock has wavered in Thursday trading. It recently traded at $246.29, off 0.4%. It has also traded up as much as 3.6% at $256.31. It has slid 7% in the past three months as investors were concerned about its valuation.
As for the analysts, Morgan Stanley’s James Faucette rates PayPal overweight and raised his share-price target to $337 from $329.
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“PayPal's stronger-than-expected top-line performance highlights the value proposition that its solutions have for consumers and merchants,†he wrote in a commentary.Â
“The March quarter results and commentary for June should alleviate concerns related to tougher comparisons, as the company is clearly benefitting from persisting secular tailwinds and strong consumer spend.â€
J.P. Morgan analyst Tien-tsin Huang also rates the stock overweight and lifted his price target to $313 from $310.
He cites several strengths. “Underlying volume and net new active accounts remain robust nearly