The 42 analysts covering Lyft stock have cooled to its prospects, with 18 having a Buy or Strong Buy rating and 23 a Hold rating. At a share price of around $18.00, the stock trades right at its median price target. At the high target of $60.00, the upside potential is 233%.
Fourth-quarter revenue is forecast at $1.15 billion, up 9.6% sequentially and by 18.6% year over year. The company is expected to report adjusted EPS of $0.13, up 21.5% sequentially and 30.0% higher year over year. For the full 2022 fiscal year, analysts anticipate EPS of $0.41, solidly better than last year’s loss per share of $0.25, on sales of $4.08 billion, up 27.1%.
Lyft stock trades at 44.0 times expected 2022 EPS, 19.6 times estimated 2023 EPS of $0.92 and 11.1 times estimated 2024 earnings of $1.62 per share. The stock’s 52-week range is $9.66 to $45.65. Lyft does not pay a dividend, and total shareholder return for the past 12 months was negative 56.3%.
PayPal Holdings Inc. (NASDAQ: PYPL) has seen its share price drop by 32.3% over the past 12 months. The company recently announced that it will lay off about 7% (around 2,000) of its workforce, the by-now standard response to any economic headwind that threatens a company’s bottom line. Company CEO Dan Schulman posted a comment on LinkedIn about PayPal’s “commitment to both purpose and profit, to action and impact at scale, and to delivering sustainable growth that benefits all people.” Except now-former employees.
PayPal does face new competition from a digital wallet due later this year called EWS from a group of seven giant U.S. banks. These banks are also the drivers behind Zelle, a bug-riddled peer-to-peer payment, so maybe PayPal does not have too much to worry about. The company reports fourth-quarter results after markets close on Thursday.
Of 49 analysts covering the stock, 35 rate it as a Buy or Strong Buy and 13 have Hold ratings. At a share price of around $82.00, the upside potential based on a median price target of $100.00 is 22%. At the high target of $200.50, the upside potential is about 145%.
Fourth-quarter revenue is expected to come in at $7.39 billion, up 8.0% sequentially and by 6.8% year over year. Adjusted EPS are forecast at $1.20, up 11.0% sequentially and 8.1% higher year over year. For the full 2022 fiscal year, estimates call for EPS of $4.07, down 11.5%, on sales of $27.5 billion, up 8.4%.
PayPal stock trades at 20.0 times expected 2022 EPS, 17.1 times estimated 2023 earnings of $4.76 and 14.7 times estimated 2024 earnings of $5.55 per share. The stock’s 52-week range is $66.39 to $125.28. PayPal does not pay a dividend, and total shareholder return for the past 12 months was negative 32.5%.
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