Here’s Why Credit Slashed Its Price Target on PayPal

By Benzinga
Benzinga
Benzinga
April 19, 2022 Updated: April 19, 2022

Credit Suisse slashed its price target for PayPal Holdings Inc to $155 from $190 (55.5 percent upside) and reiterated Outperform.

The re-rating followed model updates and increased levels of uncertainty stemming from multiple factors.

The factors included CFO departure, inflationary pressures on low-income consumers, discretionary spending, supply chain impacts, and elevated user churn.

PayPal’s FY 2022 guidance calling for +15-17 percent revenue growth was not overly conservative amid persistent inflationary pressures on low-income consumers, the risk to discretionary spending in general, and China’s outbound cross-border and other supply chains impacts.

By Anusuya Lahiri 

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