PayPal Holdings, Inc. (PYPL)

PayPal Holdings, Inc. (PYPL) — one of the world’s leading technology companies in the field of digital payments. The company’s ecosystem includes the PayPal and Venmo digital wallets for consumers, as well as a full range of payment solutions for businesses: from the branded PayPal Checkout button to unbranded processing via the Braintree platform. The company offers online and mobile payment services, P2P transfers, “Buy Now, Pay Later” (BNPL) services, and is actively developing cryptocurrency and stablecoin offerings. The post-earnings correction presents a good entry point for PYPL shares.
Investment attractiveness factors:

• Resilient business model allows the company to generate significant cash flows. Expected free cash flow is $6–7 billion, providing a yield of around 10%. Such strong cash flows enable the company to implement a large-scale share buyback program of about $6 billion in 2025, which should support the stock price.
  
• Development of strategic initiatives: the launch of the global “PayPal World” platform with integration of major global payment systems (including India’s UPI system, China’s Tenpay [operator of WeChat Pay], Latin America’s Mercado Pago, and PayPal’s own Venmo service) will allow nearly two billion users to make international purchases and money transfers using their familiar local wallets, creating growth potential. The platform launch is scheduled for the end of 2025: it will not impact current financial results but creates a positive news backdrop. PayPal is also actively developing its cryptocurrency strategy, making the PYUSD stablecoin a key growth asset.
  

Target price — $80.
Recommendation — Buy.
Price at the time of analysis — $67.65.
Upside potential — 18.3%.