New Buy Recommendation for This Technology Giant

Cantor Fitzgerald analyst Joseph Foresi maintained a Buy rating on Paypal Holdings (NASDAQ: PYPL) today and set a price target of $85. The company’s shares opened today at $78.01, equals to its 52-week high of $78.01.

Foresi noted:

“Foresi’s Take. PayPal announced the sale of $6.8 bn of U.S. consumer credit receivables to Synchrony Financial at approximately par. Paypal expects the transaction to free up around $1 bn in cash annually for higher yield investments. Synchrony becomes the exclusive issuer of the PayPal Credit online consumer financing program in the U.S. for the next 10 years. The transaction is expected to close in 3Q18. We see the transaction as a positive as it frees up cash and de-risks the balance sheet by removing the loans. We note the transaction is interesting particularly in light of SQ’s loan business.”

According to TipRanks.com, Foresi is a top 100 analyst with an average return of 15.7% and a 84.5% success rate. Foresi covers the Technology sector, focusing on stocks such as Automatic Data Processing, Jack Henry & Associates, and Fidelity National Info.

Currently, the analyst consensus on Paypal Holdings is Strong Buy and the average price target is $76.93, representing a -1.4% downside.

In a report issued on November 13, Bernstein also reiterated a Buy rating on the stock with a $90 price target.

The company has a one-year high of $78.01 and a one-year low of $38.06. Currently, Paypal Holdings has an average volume of 7.72M.

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PayPal Holdings, Inc. enables digital and mobile payments on behalf of consumers and merchants worldwide. It provides a simpler and safer way for businesses of all sizes to accept payments from merchant websites, mobile devices and applications, and at offline retail locations through a range of payment solutions.

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