Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

PayPal cut as Daiwa lowers EPS forecast

Published 02/14/2024, 12:38 AM
Updated 02/14/2024, 12:38 AM
© Reuters

PayPal (NASDAQ:PYPL) was cut to Neutral from Outperform at Daiwa on Tuesday, with the firm also lowering its price target for the stock to $62 from $64 per share.

Following the company's earnings release, the firm lowered its forecasts for non-GAAP EPS and is now calling for $5.16 for 2024, down from $5.61. For 2025, they see EPS at $5.56, and for 2026, they expect $6.18.

"With the company's guidance looking conservative, we see considerable potential for an overshoot, but at this stage, we are lacking the conviction to factor in sharp upside," said Daiwa analysts. "As such, we intend to closely observe quarterly earnings performance to get a gauge of upside potential."

Analysts feel it is difficult to envision medium/long-term EPS growth for the company until there is a return to a clear growth trajectory for transaction margin dollars and the benefits from ramped-up investments emerge.

Once those factors fall into place, the firm thinks strong profit growth will be possible for PYPL.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.