Jefferies, BofA and Wolfe initiated coverage of PayPay, issuing Buy ratings with $26‑$28 targets, implying ~25% upside from $21.
Japan’s cashless payment penetration at 42.8% in 2024, with government aiming 65‑80% long term, offering a sizable growth runway for PayPay.
PayPay holds ~64% QR‑code payment market share, 72 million users (≈60% of population) and reached $100 bn GMV in six years.
Forecasts show operating profit rising from ¥35.5 bn FY2025 to ¥136 bn FY2029 and EBITDA margin expanding from 28% to 35% by FY2028‑29.