Wolfe Research has reiterated a Peerperform rating on PayPal Holdings (NASDAQ:PYPL), restating its view of the shares amid renewed market interest in the company and its individual businesses.
The research note highlighted that, prior to a recent share-price movement, PayPal was trading at roughly 7 times its projected earnings per share for 2027. Wolfe Research suggested that certain PayPal-owned assets would likely command higher valuations than that headline multiple.
Specifically, Wolfe said Venmo and PayPal s buy-now-pay-later operations would be expected to trade at premiums, with price-to-earnings ratios in the double digits. By contrast, the firm characterized Braintree as a business that could draw a "last-dollar-down" multiple in the event of an asset sale.
Wolfe Research also noted that a full-company takeout could be valued at several turns above PayPal's then-current market multiple. The research firm attributed that potential uplift to opportunities a strategic buyer might pursue - namely, cross-selling across customer bases and extracting cost savings from scale or consolidation.
Among PayPal's divisions, Wolfe identified the unbranded payments business as the asset most likely to attract competitor interest for carve-outs or targeted purchases. The note added that PayPal has spent the last two years working to improve the profitability of its unbranded operations before moving the unit back into a growth posture.
Outside of Wolfe Research's assessment, reports have surfaced that potential suitors are evaluating PayPal in different ways. Some parties are said to be contemplating bids for the entire company, while others are reportedly focused on buying specific assets. Those discussions follow a material slide in PayPal's share price that has been linked to renewed acquisition interest.
Separately, OLB Group Inc. announced a global partnership with PayPal designed to enhance payment options for merchants. Under the agreement, PayPal s branded checkout and related services, including Venmo, will be integrated into OLB's platforms; the partnership was followed by a notable increase in OLB's share price.
Analyst reactions across the sell side remain varied. Mizuho reiterated an Outperform rating on PayPal, assigning a $60 price target and signaling a more positive stance amid takeover chatter. Bernstein maintained a Market Perform rating with a $45 target, citing concerns about PayPal's branded business and weak e-commerce growth when excluding major platforms. Jefferies reiterated a Hold rating with a $40 price target and pointed to a decline in branded take rates in the fourth quarter, which the firm attributed to volume-based investments.
These divergent views illustrate the range of perspectives on how PayPal's businesses might be valued - whether as a consolidated entity or as separate assets sold to strategic buyers.
Summary of the core points in Wolfe Research's note and recent market activity:
- Wolfe Research reaffirmed a Peerperform rating and said PayPal was trading at about 7x 2027 EPS before a recent move.
- Venmo and the buy-now-pay-later business were identified as likely to trade at double-digit P/E premiums; Braintree could fetch a last-dollar-down multiple.
- Wolfe views PayPal's unbranded business as the most probable candidate for competitor-led asset purchases, noting prior efforts to restore profitability.