Here’s Why Credit Slashed Its Price Target on PayPal

Here’s Why Credit Slashed Its Price Target on PayPal
The logo of online payment company PayPal is pictured during LeWeb 2013 event in Saint-Denis near Paris on Dec. 10, 2013. Eric Piermont/AFP via Getty Images
Benzinga
Updated:

Credit Suisse slashed its price target for PayPal Holdings Inc to $155 from $190 (55.5 percent upside) and reiterated Outperform.

The re-rating followed model updates and increased levels of uncertainty stemming from multiple factors.

The factors included CFO departure, inflationary pressures on low-income consumers, discretionary spending, supply chain impacts, and elevated user churn.

PayPal’s FY 2022 guidance calling for +15-17 percent revenue growth was not overly conservative amid persistent inflationary pressures on low-income consumers, the risk to discretionary spending in general, and China’s outbound cross-border and other supply chains impacts.

By Anusuya Lahiri 
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