Market Overview

PayPal's Digital Payment Momentum Outweighs Risks

PayPal's Digital Payment Momentum Outweighs Risks

Paypal Holdings Inc. (NASDAQ: PYPL) was upgraded by Piper Jaffray after the company beat revenue and EPS estimates when it reported first quarter earnings Wednesday.

Paypal faces “significant long-term competitive risks” in the form of transaction economics and the company’s market share, analyst Jason Deleeuw said in a note. Merchants, though, have been slow to accept — and consumers have been slow to use — competitors, Deleeuw said.

Deleeuw upgraded Paypal from Underweight to Neutral and raised its price target from $41 to $45.

Strong growth in digital payments “likely keeps estimates biased upward through 2018” for Paypal, according to Piper Jaffray.

Partnerships Key In The Long-Term

Paypal’s partnership with Android Pay “is a smart strategic step toward reducing long-term competitive risks,” Deleeuw said.

Paypal could benefit from similar partnerships with other mobile wallets such as Apple Inc. (NASDAQ: AAPL)’s Apple Pay and Samsung Pay so it’s used seamlessly, according to Piper Jaffray.

Multiple companies have entered Paypal's space in recent years, but the company still leads the pack with 180 million active consumer users.

The company acquired TIO Networks, a Vancouver-based bill payment processor, for $233 million in February.

Related links:

Losing PayPal May Have Actually Helped eBay 

Look For PayPal's Growth Momentum To Continue In 2017

Latest Ratings for PYPL

Jul 2020Piper SandlerInitiates Coverage OnOverweight
Jul 2020WedbushMaintainsOutperform
Jun 2020JMP SecuritiesInitiates Coverage OnMarket Outperform

View More Analyst Ratings for PYPL
View the Latest Analyst Ratings


Related Articles (PYPL)

View Comments and Join the Discussion!

Posted-In: Apple Jason Deleeuw PayPalAnalyst Color Upgrades Price Target Analyst Ratings Tech Best of Benzinga

Latest Ratings

MSGEImperial CapitalInitiates Coverage On73.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at