PayPal Holdings shares rise after analysts consider guidance reset
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PayPal Holdings (NASDAQ:PYPL) shares are rising 3.5% in Thursday premarket trading after analysts weigh in on the payment technology company's Q1 earnings and 2022 guidance cut.
Management also dropped its medium-term outlook, "to level-set expectations in what remains a dynamic environment." 
Its share increase has moderated from the 5% pop it saw after Wednesday's close.
Better-than-expected Q1 earnings were driven by its total payment volume and take rates, more than offsetting higher-than-forecasted operating expenses, said Evercore ISI analyst David Togut in a note to clients. "That said, PYPL now faces increased headwinds from greater-than-expected inflation, negatively pressuring discretionary spending, combined with challenges tied to the conflict in Russia/Ukraine, worsening supply chains, and slowing ecommerce growth," he said. Togut has an Outperform rating on the stock.
Oppenheimer analyst Dominick Gabriele, who has an Outperform rating on PayPal (PYPL) concluded: "Though cautious, worst likely behind us, significant upside potential for the brave, if management executes/meets expectations."
Evercore's Togut still has PYPL as a Top Pick for 2022, still an H2 performer, "although we believe the stock has bottomed."
Truist analyst Andrew Jeffrey, who has a Hold rating on PYPL, is more cautious, saying, "While lower C22 guidance de-risks the near-term outlook, we think fundamentals are impaired as the company seeks to shore up its competitive position and tries to drive new revenue streams, e.g., BNPL, in-store, Venmo, etc."
Earlier this month, SA contributor Daniel Jones explains why he sees PayPal (PYPL) stock as undervalued