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Shares of the self-proclaimed “future of money” payments giant PayPal ( PYPL ) rose Thursday after the company late Wednesday posted Q1 earnings and revenue that beat Wall Street views, as did its sales outlook, earning praise from a number of analysts. PayPal stock was up 2.5% in afternoon trading on the stock market today , above 41 and surpassing a 40.03 buy point, after the earnings beat. Shares have become extended from the lower 38.62 entry. PayPal is an IBD Leaderboard stock with a Composite Rating of 94, where 99 is the highest. IBD Take: PayPal stock has been on a roll, and IBD Stock Checkup can help explain just why. In a research note late Wednesday, RBC Capital Markets analyst Daniel Perlin wrote that the results supported his thesis that the company continues to take market share. Perlin raised his price target on PayPal stock to 46 from 42. Wedbush analyst Gil Luria bumped his price target to 47 from 45. In a research note, Luria wrote that accelerating growth and market share gains — especially in mobile — set PayPal apart from others. The payments space, however, has attracted a bevy of big tech rivals, including Apple ( AAPL ) and Alphabet ‘s ( GOOGL ) Google. “We believe competitive concerns continue to be exaggerated, considering completing solutions have all failed to get through PayPal’s incumbency on both consumer and merchant side for the last two to 10 years,” Luria wrote. BTIG analyst Mark Palmer reiterated his buy rating, saying PayPal is one of the most “direct means by which investors can participate in the rapid global growth of mobile payments and e-commerce.” Palmer said competitive concerns about Apple Pay moving to Safari, Apple’s Web browser — thereby making it simple for shoppers to make purchases with the technology within the browser — would hard to gauge for “some time.” Palmer wrote that it remains to be seen whether PayPal will be able to make much money from Venmo, its peer-to-peer payments app. But Jefferies analyst Jason Kupferberg said the Venmo pilot — allowing Venmo customers to pay with Venmo at a small number of merchants — was “well received,” and the company plans to accelerate its deployment. Scalper1 News
Scalper1 News