On the former, Ng forecasts EPS growth of over 20% after 2022, which should likely help PYPL shares to re-rate following massive losses suffered recently.
The EPS growth will be driven by secular tailwinds from the digitization of payments and e-commerce growth, abating headwinds after 2022 (e.g., eBay, supply chain, credit & funding normalization), and product initiatives to improve monetization & market share at Venmo and Paypal.
Ng has a $144.00 per share price target on PYPL, which signals an upside of nearly 19%.
Similarly, Ng started Block at Buy with a $173.00 per share price target.
SQ is well-positioned to benefit from Cash App's growing monetization from new product features (e.g., tax preparation, card spending, cash management, stock investing, Bitcoin) while enjoying ongoing user growth from the network effects of P2P payments, as well as Square's continued share gains within SMB acquiring. The recent acquisition of Afterpay should generate synergies and integrate the Square and Cash App ecosystems through the addition of new consumers and merchants, as well as helping to establish commerce & brand discovery features into Cash App while generating leads for merchants, the analyst wrote in a client note.
By Senad Karaahmetovic
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.