PayPal has limited standalone options to improve growth, Morgan Stanley says
PYPL•Few catalysts for a sustained reacceleration
Morgan Stanley said it sees few realistic catalysts that could drive a sustained reacceleration in PYPL's revenue and earnings growth.
Reuters reported that PYPL's board views the $60.50-per-share offer from Stripe and Advent as inadequate, believing it undervalues the company and poses regulatory and financing challenges.
According to data compiled by LSEG, 10 of 46 brokerages rate the stock "buy" or higher, 32 rate it "hold," and four rate it "sell" or lower. The median price target is $48.
Up to the last close, the stock had fallen 2.8% this year.
Morgan Stanley sees limited standalone growth options
Morgan Stanley says Stripe and Advent International's proposal would provide the "most credible path to value realization" for PayPal shareholders amid limited standalone options to improve growth for PYPL.
The brokerage said the company faces intense wallet competition and a maturing customer base across PayPal and Venmo.
Digital payments platform PYPL shares fell 1.2% to $56.06 in premarket trading.
