Cantor Sees PayPal Worth $70 Per Share

Cantor Fitzgerald has released a sum-of-the-parts analysis valuing PayPal Holdings (PYPL) at $70 per share, surpassing the current acquisition bid of $60.50. The valuation implies a 15.7% upside from the bid price.

Recommendation Change

Cantor did not issue an explicit buy or sell rating, but the new $70 price target represents a premium over the current bid. The analysis suggests the market may not be pricing in PayPal's full value.

Analyst's Rationale

The analyst argues that PayPal comprises multiple business segments with independent value, including payment processing, digital payment solutions, and fintech investments. The sum-of-the-parts methodology aggregates these to arrive at a higher total value than the current market price.

Context

This analysis comes amid pressure on PayPal's stock due to increased competition in digital payments. Other analysts hold mixed views: some see undervaluation, while others flag growth challenges. PayPal's stock has declined about 20% over the past year.

What to Make of It

Cantor's analysis highlights a gap between PayPal's intrinsic value and market price. However, investors should consider competitive and regulatory risks. This is not a buy or sell recommendation, but one analyst's opinion.