PayPal Holdings Inc (NASDAQ:PYPL) shares are trading higher after Mizuho analyst Dan Dolev upgraded the stock from Neutral to Buy and raised its price target from $68 to $90.

Dolev’s proprietary analysis of PayPal’s newly introduced Fastlane product shows potential for a $1.0 billion—$1.5 billion transaction margin dollar lift (5%—10% upside) over the medium term, given the $1.43 trillion of annual e-commerce spend that he noted is addressable by Fastlane.

According to the analyst, Fastlane is PayPal’s new solution to improve the guest checkout experience by increasing speed and decreasing friction.

Also Read: PayPal Raises Annual Outlook, Expands Q1 Margins Amid Competitive Pressure from Apple

Shoppers can save their information with Fastlane once and then check out with as little as a single tap.

The analyst is also encouraged by stabilization in Branded Checkout trends across his analysis of two dozen of PayPal’s largest e-commerce partners.

Fastlane’s ultimate TAM could be $3 trillion. Dolev estimated that $1.43 trillion is realistically addressable by Fastlane in a potential unbundled payments world (à la Stripe).

Dolev noted the valuation as compelling. As the Fastlane opportunity materializes, PayPal should increasingly trade at a modest premium vs. the payments group.

Dolev’s new 2025 revenue and transaction margin estimates of $34.6 billion and $14.81 billion are up from $34.4 billion and $14.75 billion, respectively.

Price Action: PYPL shares traded higher by 2.78% at $62.75 at the last check Thursday.

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