The pullback in PayPal may be overdone, we noted on November 9.
We also noted:
With the pullback from $304.08 becoming overkill, keep an eye on the stock. Even the pile-on of lowered price targets is overdone.
- Citi lowered its target to $300 from $350
- RBC Capital lowered its target to $298 from $322
- Baird lowered its target. To $290 from $325
- Deutsche Bank lowered its from $360 to $260
With a great deal of negativity priced in, we could see a near-term bounce. Plus, if PYPL can hold $204.58, the excessively oversold stock could rally back to its 50-day moving average around $261.09, near-term. We’re just waiting for the weak hands to leave.
So far, it looks like we were right.
At the moment, shares of PYPL are up $6.45 to $208.45. From here, we’d like to see an initial bearish gap refill around $230, and potential move back to $270, near-term. Plus, it may not be long before other analysts start jumping on the bullish bandwagon.
