2024-01-23 11:35:38 ET
Summary
- PayPal is a dominant player in the rapidly expanding digital payment processing sector.
- The new management is poised to orchestrate a strategic comeback.
- The current valuation of the stock presents an excellent value proposition.
- And lastly, the robust cash flow position paves the way for ongoing opportunities for share buybacks.
- The target price is set at $114, derived from the projected earnings per share for the fiscal year 2024/25, and it incorporates a retracement based on prevailing market multiples.
Executive Summary
PayPal stands as one of the world's largest payment processing companies, facilitating over $1.5 trillion in transactions annually across more than 200 countries. The payment processing industry is expected to sustain growth, fueled by the development of emerging economies and advancements in technology. Over the past two decades since its IPO in 2002, PayPal has established itself as a robust player in the market.
While the stock reached its peak at above $300/share in 2021, it experienced a significant downturn, hitting a low of $50/share a few months ago-an 83% decline from its peak. Recent market activity has seen a partial recovery, with PayPal shares currently trading around $64/share....
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For further details see:
Beyond The Downturn: Analyzing PayPal's Inherent Value And Comeback Potential In 2024