After announcing third-quarter results yesterday, Paypal has been rallying more than 8% in today's trading session so far.
Several analysts have commented on Paypal's (NASDAQ: PayPal [PYPL]) yesterday's Q3 results announcement and most of them agree that the company is keeping "bullish" investors satisfied. Analysts Kupferberg, Fitzgerald and Cary believe that Paypal has a current "unique position" and is a "must-own stock" referring to the company's revised 3-year revenue outlook, reports Benzinga. In this revenue outlook for the period ending in 2019, the initial forecast of a 15% growth was upgraded to 16-17%.
Benzinga says that the revised 3-year revenue guidance is a good sign of Paypal expecting to avoid the negative impact from the recent partnership between Visa (NYSE: Visa [V]) and Mastercard (NYSE: Mastercard [MA]), possibly threatening Paypal's business.
"PYPL provided an initial high-level look at 2017 guidance, which calls for 16–17 percent const-curr revenue growth (JEFe/Street=17.4 percent/16.3 percent) and flat y/y operating margins versus JEFe down 50 bps and consensus down 10 bps. The '17 guide assumes very little top-line contribution from the V/MA deals, as consumer choice rolls out more broadly next year," said Jefferies analyst in a note, as reported by Benzinga.
This quarter, Paypal has reported an 18% growth in its revenue to $2.67 billion, as compared to the estimated $2.65 billion. Adjusted earnings remained at 35 cents per share, reports TechCrunch. However, the total payment volume results made some investors concerned: Paypal couldn't meet the predicted $88.3 billion and reported only $87 billion in total payment volume.
“We are further expanding the ubiquity and value of the PayPal brand and moving deliberately towards achieving our vision of becoming an everyday, essential financial service for people around the world,” said CEO Dan Schulman in a report.
PYPL shares slightly declined before the earnings announcement and then jumped over 8% to $43.42 in today's early trading session. Jefferies Group rates PYPL as a "Buy" and sets its price target at $48.