Posted 2/26/2024, 11:01:00 AM
PayPal and Salesforce Report Solid Results, But Analysts' Sky-High Targets Raise Questions
- PayPal posted solid Q4 results but gave disappointing guidance for 2024 due to faster growth in lower-margin products
- Analyst has $104 price target for PayPal, implying 79% upside based on dominance in online payments and growth potential
- Salesforce posted better-than-expected Q3 earnings with robust growth across products
- Analyst has $481 price target for Salesforce, implying 72% upside based on leadership in CRM software and AI innovation
- Both PayPal and Salesforce seem fairly valued based on revenue multiples, though 72-79% upside in 12 months seems optimistic