Here’s Why Baird Slashed PayPal’s Price Target by 15 Percent

By Benzinga
Benzinga
Benzinga
April 2, 2022 Updated: April 2, 2022

Baird analyst Colin Sebastian lowered the price target on PayPal Holdings Inc. to $175 from $205 (51.3 percent upside) and kept an Outperform rating on the shares.

He believed steady or even accelerating trends concerning merchant integration with digital wallets were a crucial medium and long-term positive for PayPal.

However, Sebastian remained cautious near term on macro headwinds, slower growth, and competition. He still viewed PayPal as a secular winner.

PayPal reported quarterly earnings of $1.11 per share, missing the consensus of $1.12. The Q4 sales of $6.90 billion beat the consensus of $6.86 billion.

Recently, Goldman Sachs initiated coverage on PayPal, citing product initiatives and secular tailwinds from the digitization of payments, e-commerce growth, and international expansion.

By Anusuya Lahiri

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