Goldman Sachs on PayPal
The investment firm expects that the e-commerce business will grow at a rapid speed, as consumers increasingly need good payment services. The demand for online payment services could rise. If PayPal provides new products that simplify and smoothen payment processes, it could drive growth for the company.
Goldman Sachs wrote, “We believe TPV [total payment volume] growth from the growing ubiquity of the service, incremental engagement from new product offerings, and comprehensive partnerships will drive continued outperformance.”
PayPal was trading at $61.13 on September 8, 2017, near its 52-week high. Its 52-week high is $62.23, and its 52-week low is $37.54. On a year-to-date basis, the stock returned nearly 51.8% as of September 8, 2017. The broader market S&P 500 Index (SPY) returned nearly 9.7% during the same period. Over a five-year period, PayPal has returned nearly 58%.
PayPal is trading 12.2% above its 100-day moving average, 4.3% above its 50-day moving average, and 1.2% above its 20-day moving average. Goldman Sachs has a current target price of $72 for PayPal.
In the next part of this series, we’ll analyze Goldman Sachs’s view on Alibaba (BABA).