TECH - PayPal's New Leadership and Strategy Poised to Drive Profitable Growth Analyst Says | Benzinga
RBC Capital analyst Daniel Perlin reiterated PayPal Holdings Inc (NASDAQ:PYPL) with an Outperform and a $84 price target.
PayPal has called out fiscal 2024 as a transition year to set the company up for long-term profitable growth, Perlin noted.
The combination of fresh leadership, better aligned to drive transaction margin improvement specifically, and management commentary during the quarter gave the analyst incremental conviction of the profitable growth transition.
Perlin’s increased conviction in PayPal’s ability to improve PSP transaction margin is rooted in management commentary on more “partnership-based conversions,” a calculated rollout of Fastlane in fiscal 2024, and anecdotal comments of high demand from their customer conference and the use of low/no-code tools for faster integrations, which improved from 2 weeks to 2 hours.
Perlin’s conviction in better monetizing the Venmo and PayPal digital wallet users is rooted in incremental management commentary on improved card adoption through prompts during the onboarding process, the rollout ...