Analysts see a strong buying opportunity in payments stock PayPal. Since the beginning of the week, three analysts have reiterated their PayPal buy ratings.
These analysts are sticking to their bullish calls despite a Wall Street Journal report suggesting PayPal experienced unexpectedly high fraud losses with its Venmo digital money transfer service.
"While the WSJ story on unexpected fraud losses is a bit unsettling, we think it is more surprising that the information became public," Buckingham analyst Chris Brendler (Track Record & Ratings) wrote on Nov. 26. "Innovative payments companies are constantly testing and learning new products/features so we're more concerned how/why this story came public."
Five-star Cantor Fitzgerald analyst Joseph Foresi (Track Record & Ratings) sets out the bull picture in his Oct. 23 report. He pointed to its higher-than-industry growth rate and dominant position in online payment processing. "Fundamentally, we believe PayPal can grow at roughly double the market average, supporting its premium to the group."
He reiterated his PYPL buy rating with a price target of $101, 23 percent above its current price.
In total, this strong buy stock has snapped up 19 top analyst buy ratings versus four hold ratings over the last three months. This is with a $100 average analyst price target.