PayPal (PYPL) Stock Forecast & Price Target

PayPal Holdings is projected to achieve non-GAAP EPS growth in the low-teens for FY27, with longer-term expectations of at least 20% growth, reflecting a strong earnings outlook. The company's innovative omnichannel approach and the growth of Venmo are expected to provide significant benefits by expanding its user base and enhancing merchant access across its product suite. Additionally, the sustainability of PayPal's Total Payment Volume (TPV) growth, alongside improving transaction margins and successful strategies in promoting debit card offerings, supports a positive long-term growth trajectory.

PayPal Holdings faces a negative outlook primarily due to the potential impact of a deteriorating macroeconomic environment, which could reduce consumer sentiment and spending, ultimately affecting the company's growth and profitability. Furthermore, heightened competition and challenges in renegotiating contracts with major merchants could hinder growth until late FY25, while increased regulatory risks and dependence on payment card networks amplify concerns about potential profitability declines. The combination of these factors, including significant volatility in foreign currency exchange rates, suggests that the company may struggle to maintain its financial performance in the near term.