Digital payments company PayPal Holdings, Inc. (PYPL) recently announced that it has partnered with an anti-hate organization, the Anti-Defamation League (ADL), to fight all forms of hate and extremism in the financial industry.
Following the news, shares of the company declined marginally in Monday’s trading session. However, it pared its losses slightly to close at $306.90 in the extended trading session.
The partnership is aimed at gathering data on how extremist and hate movements throughout the U.S. are using financial platforms to further their agendas. This data will be shared with policymakers and law enforcement authorities.
The Chief Risk Officer and EVP of Risk and Platforms at PayPal, Aaron Karczmer, said, “By identifying partners across sectors with common goals and complementary resources, we can make an even greater impact than any of us could do on our own. We are excited to partner with the ADL, other non-profits and law enforcement in our fight against hate in all its forms.” (See PayPal stock chart on TipRanks)
On July 26, Morgan Stanley analyst James Faucette reiterated a Buy rating on the stock with a price target of $337, which implies upside potential of 9.8% from current levels.
The analyst stated, “PayPal’s new product rollouts, namely Pay in 4, in-store QR codes, crypto-trading, and the Venmo credit card have launched and we expect management will give another positive update on early adoption metrics. Qualitative feedback on uptake will be a key area of investor focus, along with an update on the 3Q app revamp and services yet to be formally announced like high-yield savings and stock investing. In Q1, PayPal’s BNPL solution delivered $1 billion in volume, and had 3.3M consumers using it and 330K merchants offering it. Importantly, 50% of BNPL users are making a repeat Pay in four transactions within three months and half of PayPal’s crypto users open their app every day.”
Consensus among analysts is a Strong Buy based on 22 Buys and 3 Holds. The average PayPal price target of $328.58 implies upside potential of 7.1% from current levels. Shares of the company have gained 72.4% over the past year.
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