- With PayPal Holdings (NASDAQ:PYPL) stock sinking 5.1% after the payment tech firm issued disappointing Q3 guidance, at least two analysts see the dip as an opportunity to load up on the stock.
- BofA Securities analyst Jason Kupferber notes that "core trends remain robust" with Q2 revenue rising 32% Y/Y, ex-eBay; reiterates Buy rating.
- He attributes the stock post-earnings stock weakness to its unchanged 2021 outlook for revenue and non-GAAP EPS despite its stronger TPV growth guidance, modest Q2 revenue miss, and Q3 revenue guidance below the Street consensus.
- Morgan Stanley analyst James Faucette raises his price target on the stock to $340 from $347.
- He's "really excited to hear about multiple vectors of improving engagement and usage", including net new active accounts $1.5B in Buy Now Pay Later volume in Q2, and faster-than-expected bounce back in purchases related to travel and events.
- Faucette remains Overweight on PayPal; reduces 2021 net revenue estimate by $14M to $25.76B to account for faster-than-expected rolloff of eBay volumes and increases 2021 adjusted EPS estimate by $0.08 to $5.83.
- SA contributor Michael Wiggins De Oliveira looks beyond eBay's impact