Morgan Stanley Backs Stripe-Advent Deal at $53B as PayPal's Best Path to Value After Board Deems Offer Inadequate

According to Morgan Stanley, a sale to a Stripe and Advent International-led consortium represents PayPal Holdings Inc. (PYPL) as the most credible path to unlocking shareholder value. This follows Reuters reporting on Thursday that PayPal's board views the $53 billion takeover proposal as inadequate. Morgan Stanley maintained its Underweight rating and $34 price target, implying approximately 39% downside from current levels, citing limited standalone growth catalysts for the company.

Cantor Fitzgerald's sum-of-the-parts analysis suggests a $70-per-share offer would more accurately reflect PayPal's intrinsic value. Meanwhile, Barclays upgraded PayPal to Equal Weight from Underweight with a $55 price target, noting that acquisition speculation reduces near-term downside risk despite unchanged fundamentals.