SunTrust's Peck 'Cautiously Optimistic' On eBay Following Braintree Purchase, Believes Co. Making Progress On 'Many Efforts'
SunTrust Robinson Humphrey's Robert Peck early Thursday said he likes eBay's (NASDAQ: EBAY) move to buy Braintree for $800 million.
Peck highlighted several positives:
- "the robust set of APIs accelerates the technology development for PayPal,
- PayPal gets more into the Services side of mobile apps with a strong set of prominent emerging companies (Uber, Airbnb, etc), and
- the Venmo assets add 1-click tokenization that accelerates mobile adoption."
The SunTrust analyst noted the move is inline with comments on recent company calls suggesting it will be re-inventing PayPal. Peck said, "We think this acquisition goes a long way to helping this transformation and is a good use of the company's ~$3b of US cash (non-equity), as it can almost be thought of as “outsourced R&D” for PayPal. We continue to think the company is making progress on its many efforts."
Peck said he remains cautiously optimistic on eBay shares. The analyst maintains a Neutral rating and $59 price target on eBay.
Shares of eBay are
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