PayPal Holdings' strategy to roll out its new "Fastlane" guest checkout service is jelling though monetization will wait, said a Deutsche Bank analyst who hiked his price target on the e-commerce stock. PayPal stock rose on Monday, continuing its rally under new Chief Executive Alex Chriss.
Also, Fastlane doesn't require users to create PayPal accounts.
PayPal in August announced Fastlane partnerships with Adyen and Fiserv.
PayPal Stock: Partnerships Grow
"While PYPL will not realize any material pricing benefits from Fastlane through the remainder of fiscal 2024 as the company is looking to drive adoption from merchants before beginning to price for value, we do believe that pricing benefits from Fastlane will begin in 2025 and gradually ramp overtime," said Deutsche Bank analyst Bryan Keane in a report.
He added that "PYPL will likely opt to not take full value early in the rollout in order to incentivize further adoption."
Keane hiked his price target on PayPal stock to 94 from 74.
On the stock market today, PayPal stock rose more than 2% to 78.59. PayPal stock has gained 27% in 2024.
"We believe that the strategic priorities of PayPal CEO Alex Chriss are showing early signs of success," Keane added.
Chriss, a former Intuit executive, took over as PayPal CEO in late September 2023.
PayPal Stock Technical Ratings
PayPal recently announced a new partnership with Amazon.com and expanded marketing ties with Shopify.
Further, PayPal recently upgraded its rewards program for debit-card users with a 5% cash-back offer.
San Jose, Calif.-based PayPal has evolved from an online checkout site to a mobile shopping and person-to-person payments site. PayPal stock holds a Relative Strength Rating of 87 out of a best-possible 99.
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