PayPal Review, Latest Guidance Appears Achievable

Deutsche Bank analysts provided their views on PayPal Holdings, Inc. (NASDAQ:PYPL), noting that the latest guidance appears achievable.

Following numerous quarters where investors have been left wondering if the company’s guidance cuts were enough amid concerns around rising inflation and the broader health of consumer eComm spending, the analysts believe the company’s new reset expectations finally look achievable.

The company took a more conservative approach and trimmed its full 2022 revenue and TPV guidance last quarter. while also announcing new CFO Blake Jorgensen and an investment from Elliot who should drive sustained cost discipline.

Further, the analysts see upside potential to their current adjusted operating margins to approximately 22.0%, and around 23.5% in 2023 and 2024, respectively, with leverage coming from incremental cost reductions above and beyond the $1.3 billion announced opex savings through 2023.