Paypal And eBay Charts Look Great For 2016, Frank Longman Says
- Shares of both Paypal Holdings Inc (NASDAQ: PYPL) and eBay Inc (NASDAQ: EBAY) have gained 9 percent in the last three months.
- Brean Capital’s Frank Longman said that the charts of both PayPal and eBay appear “built to work” in 2016.
Since the split of eBay and PayPal, the companies have built “interesting looking bases,” analyst Frank Longman said. He added, “[W]e think the setup is there for both to work in 2016.”
eBay is a "$35.5 before a close < $24" proposition, which represents a 27 percent upside before 13.9 percent down from the current levels, thus it is “better if you can catch it on a dip,” Longman commented.
PayPal is a "$49.4 before a close < 32" proposition, which represents a 33 percent upside before a 13.7 percent downside. This too means that it is better to own the stock on a pullback.
“EBAY has the cleaner base and value is improving over growth so let's do that first,” Longman added.
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