Out of all the bullish calls I’ve made in 2024 so far, this will be one of the most confident. PayPal (NASDAQ:PYPL) is a fintech firm with major growth potential, and PayPal stock is so far below its peak price that it’s ridiculous.
A Wall Street expert agrees with my $90 price target. But hey, let’s not get ahead of ourselves. I’ll provide the facts and circumstances, and I expect you’ll be eager to invest in PayPal.
This Will Put PayPal’s Financials in the Fast Lane
Back in January, Mizuho Securities analysts downgraded PayPal stock from “buy” to “neutral.” The cited competitive concerns, especially since PayPal has done well on desktop computers but might fall behind as a processor of mobile-phone payments.
The Mizuho analysts haven’t forgotten about those concerns. However, well-known Mizuho analyst Dan Dolev recently upgraded PayPal shares from “neutral” back to “buy.”
Not only that, but Dolev raised his price target on PayPal stock from $68 to $90. Dolev and other Mizuho analysts cited PayPal’s Fastlane service as a positive catalyst.
Fastlance is an ultrafast, often single-click checkout service that “can accelerate checkout speeds by nearly 40% compared to a traditional guest checkout,” according to PayPal.
Fast lane “can drive a $1.0 billion-$1.5 billion lift to PYPL’s transaction margin dollars, which represents 5%-10% upside vs. 2023 levels,” the Mizuho analysts estimated.
Growth of 5% to 10% isn’t too much to ask for, and Fastlane should help PayPal gain market share among mobile-focused payment processors this year.
PayPal Leverages Users’ Data
This next news item may be a little bit controversial. It’s always debatable whether financial firms should extensively use their customers’ data.
Here’s the lowdown. Reportedly, PayPal plans to launch an advertising platform that will leverage data from the company’s users. This platform will be “rooted in transaction data generated by” PayPal’s “nearly 400 million active accounts,” Marketing Dive stated.
A primary aim of this platform will be to help merchants sell more of their products/services. Ultimately, PayPal seeks to make this ad platform a “must-use marketing channel for merchants big and small.”
We could debate the ethics surrounding PayPal’s planned use of its users’ data. However, from a financial standpoint, this looks like a savvy move for PayPal to make.
After all, PayPal’s user data is practically worth its weight in gold. So, stay tuned to see how PayPal’s planned advertising platform shapes up in the coming months.
PayPal Stock: First $90, Then the Moon
Like Dolev, I see the PayPal share price reaching $90. The company’s Fastlane service could definitely help PayPal attract and retain more mobile-phone users.
Additionally, PayPal’s planned ad platform may be controversial but should give the company a financial boost. All in all, PayPal stock deserves to be significantly higher than $90, and buying some shares today is an absolute no-brainer.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
