Latest news with #Tien-tsinHuang
Business Insider
2 days ago
- Business
- Business Insider
JPMorgan Sees 24% Upside as Block Stock (XYZ) Joins the SPX Index
Fintech company Block (XYZ) is trading higher today in the pre-market session following the news of its upcoming addition to the S&P 500 Index (SPX). JPMorgan analyst Tien-tsin Huang reacted to the news by raising his price target on the stock from $60 to $90 and reaffirming an Overweight rating. The new price target indicates a 24% upside from current levels. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. S&P 500 Inclusion Supports Bullish Outlook Huang, a 4.5-rated analyst, believes Block's inclusion in the index is a clear positive for the stock. Now that Block will join the index on July 23, he expects index funds to buy over 54 million shares, which is more than seven times the stock's usual daily volume. This move should boost liquidity and lift the share price, he said. The analyst also sees growing momentum in Block's business, helped by faster product rollouts and better marketing efforts. In his view, the company deserves a higher valuation multiple. His $90 price target is based on a 5x multiple of Block's forward gross profit, which is still below the 7–9x range that many fintech peers trade at. What's Next for Block Stock? The company is expected to release its second-quarter results on August 7. Wall Street expects Block to report earnings per share (EPS) of $0.67, indicating a year-over-year decline of about 28%. Meanwhile, analysts project Q2 revenues at $6.27 billion, according to the TipRanks Analyst Forecasts Page. The figure marks a year-over-year increase of about 1.8%. Is Block Stock a Good Investment? On TipRanks, XYZ stock has a Moderate Buy consensus rating based on 28 Buys, six Holds, and two Sells assigned in the last three months. The average XYZ stock price target of $71.29 indicates a 2.1% downside risk.
Yahoo
04-02-2025
- Business
- Yahoo
PayPal Transaction Margins and Payment Volume Drive Growth, Eyes 2025 Growth With Strong TMD Ahead of Investor Day: Analyst
JP Morgan analyst Tien-tsin Huang maintained an Overweight rating on PayPal Holdings, Inc (NASDAQ:PYPL). PayPal's fourth-quarter revenue growth of 4% was slightly ahead of JP Morgan and Street expectations and guidance (low-single-digit). The key transaction margin dollar metric was also ahead, up 7% versus JP Morgan and Street estimates of +4% and +3%. Sirius XM Q4 Earnings Beats Estimates, CEO Highlights Focus On In-Car Subscriptions, Ad-Supported Growth Gross yields were about in line with expectations, with a transaction take rate of 1.73% versus the JP Morgan and Street estimates of 1.74% and 1.73%. Total Payments Volume (TPV) was up 7% (JP Morgan and Street estimate of +6% and 7%), including Brand volume up 6% foreign-exchange neutral (JP Morgan estimate +7%), stable from last quarter despite accelerating market growth (though management noted that the U.S. did accelerate). The Payment Service Provider (PSP) volume was +2% (JP Morgan estimate +3%), decelerating 9ppts sequentially. This was driven by PayPal's price-to-value strategy, which is accretive to target market determination (TMD) growth. The fourth-quarter non-transaction expenses increased 10% (JP Morgan and Street estimates +12% and 7%) on marketing investments, driving margins down ~30bps for adjusted EPS of $1.19 (JP Morgan and Street estimates of $1.12 and $1.13), up 5% versus guidance calling for low to mid-single-digit declines. The fiscal 2025 outlook calls for 4%-5% TMD growth versus JP Morgan and Street estimates at 3% and 4% growth; excluding float income, TMD is expected to be up at least 5% (JP Morgan estimates +4.5%), in line with preliminary view given last quarter that growth should be at least fiscal 2024 levels (5%). Non-transaction operating expenditure will likely grow low-single digits, while tax was guided to 23%-24% (JP Morgan and Street estimates 23% and 22%) for adjusted EPS up 6%-10% (JP Morgan and Street estimates +7%). FCF guided to $6 billion-$7 billion, bracketing JP Morgan and Street estimates. First-quarter guidance calls for 4%- 5% TMD growth (prior JP Morgan and Street estimates 2% and 4%), implying minimal acceleration through the year on a reported basis, likely due to float. Adjusted EPS is up 6%- 8%, ahead of prior JP Morgan and Street estimates of 6%. Huang's expected stock reaction pre-call is lean negative, balancing a healthy TMD and EPS beat but sequentially stable Branded growth, a fiscal 2025 outlook slightly ahead of consensus, and PayPal stock up 12% since last earnings (S&P 500 +3%). PayPal's next catalyst is the February 25 Investor Day. Price Action: At the last check on Tuesday, PYPL stock was down 12.20% at $78.86. Also Read:Image via Shutterstock Date Firm Action From To Mar 2022 B of A Securities Downgrades Buy Neutral Feb 2022 Mizuho Maintains Buy Feb 2022 Barclays Maintains Overweight View More Analyst Ratings for PYPL View the Latest Analyst Ratings Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? PAYPAL HOLDINGS (PYPL): Free Stock Analysis Report This article PayPal Transaction Margins and Payment Volume Drive Growth, Eyes 2025 Growth With Strong TMD Ahead of Investor Day: Analyst originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
