PayPal Holdings won its second price target hike in two days, this time on upbeat views for its marketplace strategy and Venmo service. PayPal stock rose although the Nasdaq fell on Friday.
JPMorgan analyst Tien-Tsin Huang upped his price target on PayPal stock to 125 from 105. Huang addressed an overhang on PayPal stock; former parent eBay is phasing out the use of PayPal for its online marketplace.
“PayPal remains confident it can backfill the eventual loss of eBay volume, aided by marketplace wins like Facebook (FB)/Instagram,” Huang said in a report to clients.
EBay spun off PayPal in 2015. Their marketplace deal expires in 2021.
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The JPMorgan note follows that of Bank of America, which on Thursday hiked its price target on PayPal to 131 from 123. PayPal stock edged up 0.4% to close at 116.17 on the stock market today.
Venmo Growth Potential Tied To Millennials
The online payment processor has evolved from a payment button to a broad services provider. It has expanded from online checkout to mobile payments. Analysts expect Venmo, a person-to-person mobile payment service, to be a growth driver.
The JPMorgan analyst recently met with PayPal management.
“Specific to Venmo, we came away more positive on its potential with merchants vis-a-vis its privileged position with millennials,” Tien-Tsin added.
PayPal stock is ranked No. 12 in the IBD 50 roster of fast growing companies.
Date: June 18, 2019
Source: Investors