PayPal Has A Chance To Build Sentiment

Paypal Holdings Inc PYPL is scheduled to host its analyst day in San Jose on May 18. Credit Suisse’s Paul Condra maintained an Outperform rating for the company, with a price target of $42. The analyst commented that although management is unlikely to change its financial outlook, the event could have a positive impact on sentiment.

While terming the analyst day as a chance for PayPal to build sentiment, analyst Paul Condra said that investors could get a better understanding of the company’s operating segments, have greater faith in the existing outlook, and have a clearer idea of the long term opportunity.

More Details Of Operating Units

PayPal’s non-core businesses, including Braintree, Venmo, Xoom and Paydiant, have a strong competitive advantage, which positions the company “at the forefront of mobile/in-app payments,” Condra mentioned. Despite this, management is yet to provide details of these businesses and their financial contribution, which could help alleviate some of the negative sentiment surrounding the stock.

“In particular, we hope management provides more detail on its credit business as this product impacts the risk profile and exposes PYPL to broader trends in alternative lending,” the analyst wrote.