Digital payment processor PayPal (NASDAQ:PYPL) is deep in the red today after yesterday’s tumultuous earnings report. PYPL stock is down more than 25% today, prompting the question on everyone’s mind: Is PayPal a buy right now?
Well, according to 28 analysts on TipRanks, who give an average 12-month price target of $210, absolutely. Given PayPal’s recent highs, plus its role in the still growing cryptocurrency space, its use cases seemingly continue to rise.
Nasdaq also rates PayPal a strong buy, based on recommendations from 34 analysts received over the past three months. They set an average price target of $216.82, for a 66% upside.
Despite PYPL’s falling stock price, Benzinga continues to upgrade its price targets for the company. Benzinga’s current 12-month average price target from 25 analysts for PayPal is $241, representing more than 85% upside. In fact, this is a 14% increase from Benzinga’s previous price target. Clearly, these analysts see the tech-forward payment company bouncing back sooner rather than later.
CNN’s 42-analyst panel is similarly bullish on PayPal. They found a median 12-month price target of $200, for a 53% increase. For a separate, 49-analyst recommendation panel, the majority gave PYPL a positive assessment. Indeed, 31 analysts rated PayPal a buy, six rated it outperform, 11 rated the company a hold and just one recommended selling shares.
What else do you need to know about PayPal lately?
Unfortunate Earnings Report Marks Fire Sale for PYPL Stock
PayPal reported substantially slower-than-expected growth, with expected new account numbers around 15 million to 20 million last quarter, falling far below the expected 50 million.
The entire tech sector has fallen into correction territory after across-the-board drops over the course of January. Many believe this could be a consequence of fear over impending interest rate hikes. Growth stocks have lost much of their value, and PayPal is undoubtedly one of them. From its July high of $308 per share, PYPL has shed more than half its price in just the past six months.
The tech-heavy Nasdaq composite lost more than 18% since its November high. As such, a number of typically expensive stocks are, to some, on a rare discount. The question remains whether the growth stock pullback will continue to bare its fangs, but for some, clearly one man’s sell is another’s buy.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
