-- 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.