Soon after PayPal (NYSE: PYPL) declared a collaboration with Dutch payment company Adyen to introduce Fastlane, PayPal’s checkout solution for large-scale and marketplace clients in the U.S., its shares surged to a 52-week peak, and analysts on Wall Street have shown enthusiasm.
Indeed, PayPal’s stock reached its highest closing level in over a year on August 20, as it integrated Adyen into Fastlane, which was unveiled earlier this month, marking the continuation of a partnership that has given Adyen’s clientele access to Venmo and PayPal’s buy-now-pay-later (BNPL) options.
Wall Street’s forecast for PayPal stock
Currently, the blended 12-month PayPal stock projection provided by 31 Wall Street analysts over the past three months stands at $74.92, suggesting a rise of 4.84% from its existing value, with the lowest prediction being $65 (-9%) and the peak reaching $90 (+25.95%).
At the same time, these analysts assigned the PayPal stock a ‘moderate buy’ rating, resulting from 17 recommending a ‘hold,’ 14 suggesting a ‘buy,’ and no ‘sell’ recommendations, based on the most recent TipRanks information obtained by Finbold on August 22.
Analysts’ perspectives on PayPal stock
Among the more optimistic analysts is Dan Dolev, a senior expert at Mizuho, who has upheld an ‘outperform’ rating for PYPL shares following the Adyen announcement, asserting that the Fastlane offering must be robust enough to entice a direct rival to PayPal-owned Braintree to participate.
In his latest note, where he reaffirmed his firm’s $90 price target for PayPal shares, he argued that this initiative could enhance broader utilization of Fastlane, which he previously stated has an entire addressable market of $3 trillion, with realistically accessible $1.43 trillion, thus:
“We perceive the potential for a transaction margin lift of $1 billion to $1.5 billion [5-10% upside]. (…) Investors should start viewing PYPL as a comprehensive payments platform rather than the limited perspective of merely branded checkout.”
Moreover, JPMorgan (NYSE: JPM) analyst Tien-Tsin Huang sustained coverage on PayPal stock with an ‘overweight’ rating, increasing his firm’s price target from $77 to $80, along with several other experts who have also adjusted their forecasts for PayPal stock upwards.
Analysis of PayPal stock price
Currently, PayPal’s stock is priced at $71.46, indicating a 6.40% rise over the week, accumulating a 17.59% increase over the past month, and reflecting a cumulative gain of 16.27% year-to-date (YTD), based on the most recent chart details as of August 22.
It is also noteworthy that the market cap of PayPal USD stablecoin (PYUSD), introduced in August 2023, has surged significantly in recent weeks, exceeding $960 million, representing a growth of over 500% from the $159.06 million noted at the start of the year, despite the increasing competition in the stablecoin sector.
Considering everything, the outlook from experts on the PayPal stock projection is predominantly positive, and there are numerous reasons for this sentiment. However, fluctuations in the stock market can occasionally occur unpredictably, so conducting personal research and staying updated with relevant news is essential when making investment decisions.
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