PayPal (NASDAQ:$PYPL) is having an unbelievable October – and year, as a matter of fact. So far this year, shares of the online payments processor and former arm of eBay (NASDAQ:EBAY) are up a whopping 59%, far outperforming the S&P 500. What’s more, the bullish trend is likely to continue, according to Wall Street analysts.
According to the latest reports, no fewer than five separate analysts have published positive reports on PayPal stock. Buckingham Research gave the stock a buy recommendation, while Deutsche Bank, Guggenheim, and Merrill Lynch all raised their price targets ahead of PayPal’s 3Q17 earnings report release next week. As of this morning, Morgan Stanley officially issued an upgrade on PayPal stock.
Indeed, it’s no surprise that Morgan Stanley has finally hopped on the PayPal fan train. The firm has assigned PayPal a $76 price target — $10 above where the stock trades today. Why? Morgan Stanley thinks that the stock is still being hindered by investor worries over PayPal’s upcoming contract renegotiation that will result in terms less favorable to PayPal. However, others feel that eBay and PayPal rely on each other ‘much-too-much’ to voluntarily sever their ties.
Further, Morgan is predicting that PayPal will deliver ‘high teens revenue’ and ‘20% EPS growth’ for investors in coming years.
Featured Image: depositphotos/alexeynovikov
