PayPal stock price forecast: Mizuho sees a whopping 47% upside

PayPal Holdings Inc (NASDAQ: PYPL) is pushing to the upside at writing after a senior Mizuho analyst issued a super bullish note in its favour.

PayPal stock could rally to $90

Dan Dolev upgraded the financial technology behemoth this morning to “buy” and said its shares could climb to $90 which suggests a whopping 47% upside from here.

The analyst recommends owning PayPal stock particularly for its recently launched one-click checkout tool. His research note reads:

Note that PayPal shares do not currently pay a dividend, though. So, it may still not be very attractive for those interested in income stocks only.

Dolev’s new full-year estimates for $PYPL

Also on Thursday, PayPal had its stablecoin go live on Solana as Invezz reported here. That makes PYUSD not just faster than before but cheaper as well.

Mizuho’s Dolev now forecasts $PYPL’s revenue and transaction margin to come in at $34.6 billion and $14.81 billion, respectively, in 2025. He turned positive on the fintech because of continued strength in branded payment trends as well.

The analyst sharply increased his price target on PayPal stock this morning from $68 because he now expects it to earn $4.65 on a per-share basis this year – well above his previous projection for $4.44.

PayPal raised its outlook last month

All in all, Dan Dolev expects PayPal shares to beat market expectations moving forward. Its growth trajectory, he’s convinced, now commands a multiple of 19 times versus 15 times thus far.

Last month, the digital payments firm came in ahead of earnings estimates for its first quarter and raised its guidance for the full year. $PYPL improved its adjusted operating margin by 84 basis points and saw revenue climb some 10% to $7.7 billion in its recently concluded quarter.

The Nasdaq listed firm now sees a “mid-to-high single-digit percentage” growth in adjusted profit for 2024. William Blair analyst Cristopher Kennedy had said at the time: