Goldman Cuts PayPal (PYPL) PT To $88 On Multiple Contraction

Goldman Sachs analyst, Heath Terry, reiterated his Buy rating on shares of PayPal (NASDAQ: PYPL) but cut his price target to $88 from $90 on multiple contraction. The company reported 1Q revenue of $3.69bn (+22% yoy vs 24% in 4Q), just above consensus of $3.59bn. Adjusted operating income was $829mn, above consensus of $800mn, while adj. operating margin reached 22.5% vs. 21.8% in 1Q17.

The analyst stated "We continue to believe PayPal is well-positioned to benefit from all aspects of growth in and around digital payments. With the stock trading at 27x ‘19 pro forma EPS, compared with an average annual EPS growth rate of 22% over the next 3 years and considerable additional growth opportunities in credit, Venmo
monetization, in store, and other areas".

For an analyst ratings summary and ratings history on PayPal click here. For more ratings news on PayPal click here.

Shares of PayPal closed at $74.00 yesterday.

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