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PayPal ( PYPL ) is undervalued, an analyst has said ahead of the payments leader’s Q1 earnings due after the close Wednesday. Analysts polled by Thomson Reuters estimate that Q1 revenue will be $2.5 billion, up 19% from $2.1 billion in the year-earlier quarter, with earnings per share minus items rising 20%, to 35 cents. The IBD Leaderboard company, spun off from eBay in July 2015 , has seen its shares rise 30% since late January. Still, Jefferies analyst Jason Kupferberg says PayPal is an “under-owned, yet scarce asset.” He bumped the investment bank’s price target on PayPal stock nearly 10% to 48 from 44. Shares closed Friday at 40.31, up a fraction on the day. Kupferberg, in a research note, also said that if PayPal and Visa ( V ) revise their operating agreement, it could be favorable for PayPal. Payments has evolved into a fiercely competitive sector, with some of the largest U.S. tech companies making inroads. Apple ( AAPL ) and Google, which is a unit of Alphabet ( GOOGL ), have both built digital wallet technologies. Square ( SQ ) — which makes digital cash registers and processes payments — also has created a technology that may eat into PayPal’s top line. San Jose-based PayPal continues to rally after finding support at its 50-day moving average. Volume has been lackluster during its rebound, but not much different from when shares were falling. The stock is just above a 40.03 buy point and also is in buy range from a lower 38.62 entry. Image provided by Shutterstock . Scalper1 News
Scalper1 News