Several major banks increased the stock price target for PayPal (PYPL) on Thursday after the online payment company posted record revenue and earnings in Q2.
Late on Wednesday, PayPal came in with earnings per share (EPS) of $1.07 and revenue of $5.26bn versus the $0.88 EPS and $4.99bn analyst consensus.
CFO John Rainey said its “diversification and scale” had driven the 22% uptick in earnings and 49% increase in revenue for the latest period.
While other companies have faced major challenges during the pandemic, PayPal has benefitted from the recent surge in online payments which CEO Dan Schulman said are now “more important and essential than ever”.
He added: “Our record performance in the second quarter — our strongest quarter ever — reaffirms the relevance of PayPal in the unfolding digital future.”
Analysts were queueing up to deliver rating upgrades and higher price targets following the impressive beats.
RBC added $20 to its new $192 PT while Canaccord Genuity pivoted from $190 to $218.
Meanwhile, Morgan Stanley offered a potential high price target of $240 under its most bullish scenario.
27 of 33 analysts now rate PayPal as a ‘Buy’.
Investors looking to purchase PayPal shares at the end of the week are advised that anything up to $210 will offer solid value in the short term.
The 100-day Moving Average also suggests the stock offers strong buying potential.
Shares for the company have already climbed 70% since late April and there was another 1.8% gain after hours on Wednesday as the good news filtered through to investors.
PayPal stock continued to trend upwards on Thursday, rising a further 4.21% to $192.55 just before the final bell on the Nasdaq.
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