PYPL's Outgoing Traffic From Prominent Merchants Stabilized, Analyst Says
Mizuho analyst Dan Dolev reiterated Buy on PayPal Holdings, Inc (NASDAQ: PYPL) with a $105.00 price target.
For analysis, Dolev used web traffic data at 15 of PYPL's largest e-commerce checkout partners, including Etsy, Inc (NASDAQ: ETSY), Nike, Inc (NYSE: NKE), and Home Depot, Inc (NYSE: HD).
Dolev's analysis shows that following a decline in 2021 that lasted through 1H22, PYPL's share of outgoing traffic from this select group of prominent merchants has been stable in recent months.
While PYPL competes with Apple Pay in mobile and desktop checkout, it is most vulnerable in mobile and iPhone, in Dolev's view.
PYPL is most vulnerable to Apple Inc (NASDAQ: AAPL) Apple Pay checkout on the iPhone.
Share loss to Apple Pay has been haunting the stock in 2022.
While this is only one perspective, Dolev believes it could help improve sentiment.
The price target reflects its 2024E EPS estimate, a discount to Visa Inc (NYSE: V) & Mastercard Inc (NYSE: MA), given recent challenges.
Price Action: PYPL shares traded higher by 4.57% at $77.99 on the last check Wednesday.
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