PayPal tumbled 16% this week, but one top analyst is making a bullish long-term case for the struggling stock.
The company’s underperformance follows leadership uncertainty. PayPal’s chief financial officer, John Rainey, announced last week he’ll leave the company in late May. Yet, Bruderman Asset Management’s Akshata Bailkeri made an optimistic case for PayPal on CNBC’s “Fast Money” this week.
The firm’s equity analyst likes the stock for three reasons:
1. Post-pandemic sales could pick up
2. Its spin-off from eBay is beneficial
“EBay is no longer really an overhang,” Bailkeri said. “The company has had significant growth even after spinning out of the company in 2015.”
3. It’s an attractive valuation over a five-year horizon
Where PayPal is heading
Source: https://www.cnbc.com/2022/04/23/three-reasons-this-struggling-fintech-stock-may-break-out-of-its-slump.html