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FINWIRES

Research Alert: CFRA Keeps Buy Rating On Shares Of Paypal Holdings, Inc.

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our target price by $7 to $53, applying a forward P/E of 9.2x our 2027 EPS view vs. PYPL's three-year historical forward P/E average of 12.2x and the peer average of 8.3x. We keep our 2026 EPS estimate at $5.43 and decrease 2027's to $5.78 from $5.95. New CEO Lores introduced a much-needed strategic framework in his first quarter, reorganizing the company into three distinct business units to improve focus and accountability. The plan is underpinned by a major cost-saving initiative of at least $1.5B and a renewed emphasis on modernizing the tech stack with AI. We view this as a necessary foundational reset, with management finally acknowledging past issues and laying out a clear, albeit challenging, path forward. This cautious outlook was underscored by weak Q2 guidance, even as the company reiterated its full-year targets. While core branded checkout growth remains tepid, we are encouraged that other areas like Venmo and PSP continue to show strength, providing a buffer during this transition.

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Research Alert: Expd: Q1 Results Top Expectations

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:EXPD delivered strong Q1 results, with EPS of $1.71 versus $1.47 prior year, significantly beating our $1.37 estimate and $1.33 consensus forecast. Revenue rose 4% to $2.7B from $2.67B, exceeding our $2.59B forecast as Airfreight and Customs strength offset Ocean weakness. Mixed segment performance reflected market bifurcation, with Airfreight revenue surging 14% to $1.03B on favorable pricing while Ocean revenue plummeted 23% to $599M due to capacity oversupply pressuring both pricing and volumes. Management expects global capacity oversupply to persist near-term despite maintaining Ocean profitability. Customs/Other revenue jumped 17% to $1.15B, with double-digit growth across all products, due to hyperscaler and high-value technology customer demand plus tariff complexity. Operating margins reached the company's 30% target despite Middle East disruptions, with productivity gains from 2025 AI and technology investments beginning to materialize.

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