Despite markets opening higher to start the day, another downtrend has materialized in early afternoon trading. That said, not all stocks are performing the same. Currently, PayPal (NASDAQ:PYPL) is in focus for investors, with PYPL stock appreciating 2% thus far today.
This move comes as Bank of America analyst Jason Kupferberg upgraded PayPal to “buy” from “neutral.” Kupferberg found a number of reasons to raise his rating and price target on this stock. Indeed, a bump to a $114 price target from $94 is substantial.
Of note, improved cost efficiencies could boost earnings per share estimates for the fintech company. More share buybacks also contributed to his view that this is a stock with some bottom-line upside potential. Indeed, with investors focusing in more on the bottom-line metrics of growth stocks than top-line numbers, these factors appear to be what Wall Street and the market are focusing on right now.
Is Now the Time to Buy PYPL Stock?
Analyst upgrades are a great thing for any stock. Regardless of where investors stand on the efficacy of these ratings (given they’re based mostly on backward-looking information and may be viewed as trailing indicators), more bullish sentiment around a given stock is a good thing.
Notably, the most recent eight ratings for PayPal have been buys, with two of the most recent three being upgrades. It appears PYPL stock has now hit a level where analysts are beginning to get excited. Accordingly, the overall market appears to be siding with the views of Kupferberg and others.
Cost-cutting initiatives and share buybacks are generally positive things for existing investors looking for fundamental growth. For PayPal, a stock that’s been beaten down hard this year, such positives appear to finally be priced in by the market.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.