PayPal (NASDAQ:PYPL) shares rose more than 2% pre-market today after BofA Securities upgraded the company to Buy from Neutral, raising the price target to $103 from $86. The upgrade comes as the company demonstrates significant progress in its turnaround efforts under new leadership, just over a year after its management overhaul.

The firm highlighted potential acceleration in total payment (TP) growth by 2025, buoyed by recent positive trends in e-commerce spending during the holiday season. BofA also noted that modest improvements in branded total payment volume (TPV) growth are likely not fully reflected in the current valuation.

Additionally, PayPal’s upcoming Investor Day in February could serve as a catalyst for further positive sentiment. Strong free cash flow generation and ongoing share buybacks are expected to remain key elements of the company’s strategy, further bolstering its investment appeal.

The firm emphasized that improved sentiment is achievable, as many large institutional investors continue to maintain underweight positions in PayPal. With encouraging signs of growth and operational efficiency, PayPal appears poised for a stronger performance in the coming years.