PayPal price target raised to $74 from $70 at RBC Capital

RBC Capital raised the firm’s price target on PayPal to $74 from $70 and keeps an Outperform rating on the shares after its Q4 results. The company’s management indicated that “this is a transition year”, which will require fast execution, reinvestment of cost savings, and a strong focus on branded checkout and unbranded product innovation, and the firm is reducing its FY24 EPS view to $5.15 from $5.82. the analyst tells investors in a research note. RBC adds however that as the new management’s strategy begins to pay dividends, PayPal multiple could begin to expand in the second half of FY24.