Cantor Fitzgerald initiated coverage of PayPal Inc. (NASDAQ:PYPL) on Tuesday, assigning a Neutral rating and setting a $60.00 price target. At the time of the note the stock traded around $56.60, a level close to its 52-week low of $55.02 and materially below InvestingPro’s Fair Value estimate, a gap Cantor Fitzgerald says could imply the shares are undervalued relative to that benchmark.
The research team said PayPal’s recent strategic initiatives have begun to knit together a more balanced and profitable growth engine across three core pillars: the company’s Branded services, its Payment Service Provider (PSP) operations, and the Venmo platform. Cantor Fitzgerald referenced InvestingPro data showing a Piotroski Score of 9 for PayPal, a measure the firm interprets as evidence of strong financial health. The note also observed that management has been an active buyer of shares through repurchases.
Looking ahead, Cantor Fitzgerald expects these strategic actions to support further acceleration in transaction volumes and revenue into fiscal year 2026. At the same time, the firm cautioned that PayPal’s own guidance signals a potential near-term slowdown: management has indicated that FY26 transaction margin dollars and EPS growth are likely to decelerate as the company increases investment to drive longer-term product attachment and utilization. Cantor Fitzgerald said that expectation could keep some investors cautious.
The $60.00 price target is derived from a valuation framework that combines a multiple and discounted cash flow work. Specifically, Cantor Fitzgerald applied a 9 times multiple to its FY27 EPS estimate of $6.56 and supplemented that with a DCF analysis.
In its coverage note the firm flagged several risks to the thesis, including competition in payments and commerce, macroeconomic headwinds, concerns around risk, fraud and data security, and legal and regulatory challenges. These items were identified as key variables that could alter the company’s trajectory.
Separately, PayPal has announced strategic moves intended to broaden its commerce and consumer offerings. The company agreed to acquire Cymbio, described as a multi-channel orchestration platform, with the stated objective of enhancing its AI commerce capabilities and supporting more agentic commerce services. Cantor Fitzgerald said the acquisition is intended to help merchants make products more discoverable on AI-driven shopping platforms.
PayPal also introduced a partnership with tax technology provider april that offers free tax filing for U.S. PayPal Debit Mastercard customers. The collaboration is presented as a benefit that could reduce typical filing costs by roughly $160 and is offered through april’s platform, which PayPal and april say produces an average filing time of under twenty minutes.
Other broker activity noted ahead of PayPal’s fourth-quarter 2025 earnings report includes BTIG reiterating a Neutral rating while observing a decline in investor expectations for 2026 trade margin dollars and adjusted EPS growth. Jefferies maintained a Hold rating and a $60.00 price target, citing a marked deceleration in UK eCommerce growth. Raymond James also reiterated a Market Perform rating and lowered its fourth-quarter Branded Total Payment Volume growth assumption to 2% following management’s commentary that a slowdown is likely.
Collectively, these analyst actions and company initiatives illustrate how PayPal is positioning its product portfolio and capital allocation while navigating a mixed near-term outlook driven by investment spending and an uncertain macroeconomic environment.