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PayPal price target lowered to $109 from $137 at BMO Capital

BMO Capital analyst James Fotheringham lowered the firm’s price target on PayPal to $109 from $137 but keeps an Outperform rating on the shares. While the company reported a cost-driven Q3 earnings beat and expects 2023 margin expansion of 100 basis points y/y from cost initiatives, weaker e-commerce volume trends in September and October affected management’s slower revenue growth expectations in Q4 and 2023, the analyst tells investors in a research note. Fotheringham remains positive on PayPal longer term as the company is gaining share of industry-wide e-commerce volumes, with "sustained frequency of use by active accounts and margin expansion from increased cost discipline".

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