PayPal stock could hit $100, says Instinet
Shares of PayPal Holdings Inc. are up 0.4% in premarket trading after Instinet analyst Bill Carcache raised his price target on the stock to a Street-high $100, from $98 previously. The stock recently changed hands at about $78. “We expect the upcoming investor day to serve as a positive catalyst and highlight three focus areas that we think will reignite investor enthusiasm,” Carcache wrote. These include details on operating margin expansion, capital allocation, and “life after eBay .” PayPal was spun off from eBay in 2015, and eBay said earlier this year that it would no longer use PayPal as its primary payments provider in 2020. “Investors are hungry for mitigation strategy details, including potential partnerships that PayPal will be free to enter into” after the eBay deal expires, Carcache wrote. He rates PayPal share a buy. The stock is up 59% over the past 12 months, while the S&P 500 has gained 15%.