Shopify (NYSE:SHOP), PayPal Holdings (NASDAQ:PYPL) – Here’s How Wells Fargo Views Fintech Stocks Shopify, PayPal, Block

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  • Wells Fargo analyst Jeff Cantwell launched global coverage of the payments and fintech sector with a bullish stance.
  • He saw a $1.5 trillion annual revenue opportunity for fintech companies globally and expects 6% annual growth over the coming decade.
  • Cantwell insider Shopify Inc. (NYSE: SHOP) with an overweight rating and a price target of $834 (up 18.2%).
  • After the recent pullback, he sees the valuation as “more acceptable” for Shopify, which he expects to grow GMV rapidly in FY22 and FY23 with concurrent strong revenue growth.
  • Ongoing launches of value-added products and services highlight a crucial theme, vendor consolidation, which he believes will drive sustainable market share gains.
  • Cantwell insider PayPal Holdings Inc. (NASDAQ: PYPL) with an overweight rating and a price target of $152 (up 27.9%).
  • PayPal is the leader in payments currently trading at a “reasonable post-reset multiple”.
  • The stock reset is overblown as the company has “tailwinds” across its platforms, producing strong growth after eBay’s run-in sent shares soaring.
  • Cantwell insider Block Inc. (NYSE: SQ) with an overweight rating and a price target of $165 (up 19.7%).
  • It saw Block gain a share in its Square and Cash App businesses, with the upcoming Investor Day in May as a potential catalyst.
  • He is also interested in Block’s long-term crypto aspirations.
  • Price action: Shares of SHOP traded down 3.72% to $700.25 when last checked on Tuesday.

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Dated Solidify action From For
February 2022 Morgan Stanley Maintains Equal weight
February 2022 Swiss credit Maintains Neutral
February 2022 Mizuho Maintains Neutral

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