Shares of PayPal (PYPL) rose 3.8% in extended trading on Wednesday after the online payments company reported better-than-expected 2Q earnings. Its adjusted EPS jumped 49% to $1.07 year-over-year and beat analysts’ estimates of $0.88.
Revenues soared 25% to $5.26 billion year-on-year and surpassed Street estimates of $4.99 billion. New client additions and a surge in online payment amid COVID-19 pandemic boosted its 2Q performance, the company said.
Ahead of its earnings, on July 23, Wells Fargo analyst Timothy Willi raised the stock’s price target to $200 (8.3% upside potential) from $150. Reiterating his Buy rating, Willi said that “PayPal is positioned to drive strong growth in branded checkout volume medium-term”.
Currently, the Street has a bullish outlook on PYPL stock. The Strong Buy analyst consensus is based on 27 Buys and 6 Holds. The average price target of $184.14 implies that shares are more than fully valued. (See PYPL stock analysis on TipRanks).