According to StreetInsider, PayPal Holdings stock surged roughly 2% higher in Monday's premarket after BMO upgraded it to 'outperform' on value.

Analyst James Fotheringham estimates the stock to be worth $224, down from $278 in 2021 due to multiple compression.

The new price objective is around 19% higher than the stock's Friday closing price of $188.58. In 2021, the stock fell over 19%, while the S&P 500 gained nearly 27%.

Fotheringham believes payment equities are well-positioned for this year, and that PayPal has the potential to expand its organic revenue by 21% annually. He also mentioned that tax-loss selling has taken place and that investors are focusing on more normalized 2023 valuation forecasts.PayPal - Review 2020 - PCMag UK

The firm also suggested buying Nuvei and Global Payments in the sector, in addition to PayPal. According to the expert, Mastercard and Visa are also preferred 'buys' as core holdings.