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PayPal Holdings (NASDAQ:PYPL) rose after Susquehanna Financial upgraded the payments company on the back of an estimated profitable growth.
The stock was trading +1.37% Tuesday pre-market at $58.60.
Analyst James Friedman raised his recommendation on the stock to Positive from Neutral, with a price target of $71.
The analyst is positive on PYPL making profitable growth a top priority, and considers the recent significant fall in the stock price for the ratings action.
PayPal has lost ~15% in the last one year and ~6% year-to-date. Short interest on the stock was 2.24% of the total float as of June 15, representing 23.26M shares sold short.
The company has seen a significant dip in value after Apple unveiled new products and features at its developer’s conference, and announced a CTO appointment recently.
“Consumer-facing improvements should increase value proposition for branded checkout,” Friedman said in his note.
The average sell-side analysts rating on the stock in Buy, and Seeking Alpha authors also grade similarly.
SA’s Quant Rating system, however, assigns PYPL a Hold rating, with a score of 3.03 on a scale of 5. The system rates its Valuation as D+, Growth as C+, Profitability as A, Momentum as D and Revisions as D+.