Truist Upgrades PayPal Stock Amid Takeover Speculation
On July 24, Truist analyst Matthew Coad upgraded PayPal (PYPL) to 'Hold' with a raised price target of $57. The upgrade comes amid speculation that PayPal could be acquired by a consortium including Stripe and Advent International. Although the board has deemed initial offers inadequate, the interest from major players is seen as providing support for PYPL's stock. PayPal shares have surged about 45% since June lows, driven partly by takeover rumors and technical momentum favoring buyers. Despite this rise, PayPal still trades at a low price-to-sales ratio of 1.48x, suggesting skepticism from the market regarding competition and margin pressures is already reflected in its valuation. The company faces challenges under CEO Enrique Lores if it decides against a buyout, with potential earnings revisions downward. PayPal reports Q2 results on July 28, where analysts expect an 8.57% year-over-year decline to $1.28 per share.
Topics: fintech price target stock upgrade takeover speculation