PayPal (PYPL) Stock Forecast & Price Target

PayPal Holdings is positioned for positive growth with expectations of non-GAAP EPS rising in the low-teens by FY27 and achieving at least 20% growth in the long term. The company is strategically leveraging its omnichannel approach to enhance its offerings and capture a broader user base, particularly through the growth of Venmo and increased checkout adoption in the U.S. Furthermore, sustainable growth in total payment volume (TPV) is anticipated, supported by strong gains in transaction margin dollars and the successful expansion of PayPal's debit card services, which saw an impressive 100% year-over-year growth in the fourth quarter of 2024.

PayPal Holdings faces a negative outlook due to potential deterioration in the macroeconomic environment, which could reduce consumer sentiment and spending, adversely impacting the company's growth and profitability. The company is also contending with significant competition, making it difficult to accelerate growth, particularly as it navigates tougher market conditions and negotiations with merchants. Furthermore, regulatory risks and dependence on payment card networks pose additional challenges, with potential increases in fees and compliance requirements threatening overall profitability and operational effectiveness.