PayPal received mixed analyst updates following its Q3 results, with Clear Street raising its price target and estimates, citing expense control, while Citi lowered its price target, citing the company’s fundamentals and outlook.
- According to The fly, Citi cut its price target to $58 from $61 and maintained a ‘Neutral’ rating.
- According to Koyfin data, 33 of 44 analysts covering PYPL rate it ‘Hold’, while seven rate it ‘Buy’ or ‘Strong Buy’.
- On Tuesday, BofA raised its price target to $54 from $53 but maintained an ‘Underperform’ rating, citing persistent EU headwinds for Branded growth. Evercore ISI also raised its target to $45 from $40 while maintaining an ‘In Line’ rating, saying PayPal’s technology turnaround would take time.
PayPal shares drew mixed analyst reactions after its third-quarter results, with Clear Street raising its price target and Citi lowering it over concerns about the company’s fundamentals and outlook.
According to The Fly, Clear Street raised its price target to $62 from $60 and maintained a ‘Hold’ rating. The revised target implies about 10.5% upside from the stock’s last close.
Citi cut its price target to $58 from $61 and maintained a ‘Neutral’ rating. The revised target implies about 3.4% upside from the stock’s last close.
PYPL shares traded 1.6% lower in premarket trading at the time of writing.
According to Koyfin data, 33 out of 44 analysts covering the stock rate it ‘hold,’ while seven rate it ‘buy’ or ‘strong buy.’ The 12-month average price target on PYPL stock is $57.07.
Analysts Weigh PayPal’s Growth Outlook
According to The Fly, Clear Street raised its estimates following the earnings report, citing expense control. The firm noted that PayPal had raised guidance “across every key line.”
Citi cited PayPal’s current fundamentals and outlook in its latest assessment, noting that the company is diversifying further into financial services, according to The Fly.
Yesterday, BofA raised its price target to $54 from $53 but maintained an ‘Underperform’ rating. According to The Fly, analyst Matthew O’Neill said management did not expect Branded growth to lift despite easier comparisons, as EU headwinds were expected to persist through Q4. BofA said growth was instead relying on Braintree and Venmo/financial services, which it views as lower-quality growth drivers than Branded.
Evercore ISI also raised its price target to $45 from $40 while maintaining an ‘In Line’ rating on Tuesday, according to The Fly. The firm said PayPal’s technology turnaround will take time, with sustained growth requiring continued investment.
PayPal’s Q3 Earnings Highlights
PayPal reported third-quarter revenue of $8.58 billion, up 2% year over year but below analysts’ estimate of $8.71 billion, according to Koyfin data. Adjusted earnings came in at $1.45 per share, beating the $1.31 estimate.
The company also increased its 2026 adjusted earnings-per-share (EPS) guidance to approximately $5.60 from $5.38. For the fourth quarter, PayPal expects adjusted EPS of approximately $1.43, up from $1.23 a year ago.
PayPal’s total payment volume rose 6% to $487.14 billion, while U.S. revenue grew 5% to $5 billion and international revenue declined 2% to $3.58 billion.
How Retail Views PYPL
On Stocktwits, retail sentiment around PYPL stock remained in the ‘bullish’ territory over the past 24 hours. Whereas retail chatter turned ‘extremely high’.
One user said they got through PayPal’s earnings report without suffering significant losses, calling it a first-time experience.
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PYPL shares have dropped over 6% year-to-date.
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