PayPal price target raised to $91 from $88 at RBC Capital

RBC Capital raised the firm’s price target on PayPal (PYPL) to $91 from $88 and keeps an Outperform rating on the shares. The firm says evidence of the positive strategic shift is shown in the acceleration of U.S. Branded Experiences TPV growth of +10% year-over-year, with global online penetration at about 25% of branded volumes, Venmo monetization continues to gain momentum with about 40% year-over-year TPV growth and Buy Now, Pay Later TPV growing greater than 20% year-over-year. Additionally, the company’s partnership announcement with OpenAI, whereby PayPal will be integrated into ChatGPT and further support payment processing for merchants leveraging OpenAI Instant Checkout, highlights the strength of the company’s global distribution model, RBC argues. Nevertheless, commentary around a slower consumer in Sept/Oct, given smaller basket sizes, will temper some investor enthusiasm, says the firm.