Mizuho maintained an Outperform rating on PayPal Holdings Inc. and kept a $60.00 price objective after media reports said the company is drawing interest from potential acquirers. The coverage indicated that some prospective buyers are targeting the entire company while others are focused on specific assets owned by PayPal.
In its note, Mizuho highlighted valuation metrics that underpin its view: PayPal trades at roughly 7 times 2027 consensus earnings per share, versus a five-year average north of 20 times. The firm also noted the stock’s current P/E of 8.23. Analysis available on InvestingPro shows PayPal listed among the platform’s Most Undervalued stocks and flags the low earnings multiple as a notable item.
The brokerage underscored PayPal’s market footprint, calling it one of four globally recognized payment networks alongside Visa, Mastercard and American Express. PayPal processes nearly $2 trillion in volumes and operates a two-sided network with nearly 440 million active accounts, the firm said. The company’s portfolio includes Venmo, described as the leading U.S. peer-to-peer payment network, and a buy-now-pay-later business that the bank said is continuing to grow.
Separately, PayPal has recently been linked to takeover interest following a significant decline in its share price, according to the reports that prompted Mizuho’s reiteration. The company also announced a global partnership with OLB Group that will allow OLB to integrate PayPal’s branded checkout and related services into its platforms. That tie-up is intended to improve payment options for merchants and to simplify processes such as settlement and reporting.
Analyst coverage beyond Mizuho remains mixed to cautious. Bernstein SocGen Group reaffirmed a Market Perform rating with a $45 price target, citing concerns about PayPal’s branded business and weak e-commerce growth rates. Jefferies maintained a Hold rating with a $40 price target and pointed to a decline in branded take rates in the fourth quarter. Meanwhile, RBC Capital sharply cut its target to $59 from $91, attributing the reduction to an abrupt CEO change and what it characterized as the slow pace of necessary changes to improve Branded Checkout's total payment volume growth.
Taken together, the actions and commentary from brokers paint a varied picture: Mizuho sees an undervalued opportunity supported by PayPal’s scale and network effects, while other firms emphasize operational and growth-related headwinds in branded offerings and leadership continuity.
Summary
Mizuho reiterated an Outperform rating and $60.00 target on PayPal after reports of takeover interest. The bank emphasized PayPal’s low trading multiple relative to its five-year average and highlighted the company’s substantial payment volumes and account base. Other analysts kept more cautious stances, lowering price targets or maintaining Hold/Market Perform ratings citing branded business weaknesses, falling take rates and executive turnover.
Key points
- Mizuho holds an Outperform rating with a $60.00 price target and notes PayPal trades at about 7 times 2027 consensus EPS versus a 20-times-plus five-year average.
- PayPal processes nearly $2 trillion in volumes, runs a two-sided network with nearly 440 million active accounts, and owns Venmo plus a growing buy-now-pay-later business.
- Other broker actions include Bernstein SocGen Group’s Market Perform ($45 PT), Jefferies’ Hold ($40 PT), and RBC Capital’s cut to $59 (from $91) tied to leadership change and slow Branded Checkout TPV improvements.
Risks and uncertainties
- Takeover interest follows a significant share-price decline, introducing uncertainty around potential strategic outcomes for PayPal - this affects the payments and broader financials sectors.
- Weakness in PayPal’s branded business and softer e-commerce growth, as cited by Bernstein SocGen Group, could pressure revenues tied to merchant-facing services - impacting payments and e-commerce platforms.
- Operational challenges cited by Jefferies and RBC, including declining branded take rates and an abrupt CEO change combined with slow progress on Branded Checkout TPV growth, create execution risk for shareholder returns and market positioning.