PayPal price target lowered to $108 from $117 at BMO Capital

BMO Capital analyst James Fotheringham lowered the firm’s price target on PayPal to $108 from $117 and keeps an Outperform rating on the shares. The firm is raising its FY23 EPS view by 5c to $4.87 after the company’s Q4 cost-driven earnings beat but also reducing its price target on PayPal’s lower assumed organic revenue growth potential as revenue growth rather than margins is the key determinant of the stock’s valuation, the analyst tells investors in a research note.