In a research report issued today, Cantor analyst Youssef Squali initiated coverage on shares of Paypal Holdings Inc (NASDAQ:PYPLV) with a Buy rating and a price target of $45, which represents a potential upside of 22% from where the stock is currently trading.

Squali wrote, “With our estimates for over $280B in TPV and ~$9B in revenue for 2015, up mid- and highteens, respectively, Paypal already commands a significant (~10%) share of the e-commerce payment market. Now, with mobile blurring the lines between traditional commerce and e-commerce, PayPal is leveraging its large user base and global reach to address the broader opportunity in global commerce payments, estimated at ~$25T. PayPal commands about 1% of this opportunity”

Furthermore, “We believe that PayPal will likely look to leverage its Paydiant offering to partner up with merchants and over time cross-sell end users into using its core PayPal payment at checkout. Paydiant focuses on mobile payment solutions by enabling merchants to create their own branded wallets to accelerate mobile-in-store payments and drive consumer engagement through mobile payments.”

The analyst concluded, “PayPal’s large addressable opportunity both on and offline, strong brand and leading position online, and our expectation for mid-teens growth over the next 3-5 years are key reasons why we find the shares compelling at current levels.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Youssef Squali has a total average return of 21.4% and a 64.9% success rate. Squali is ranked #18 out of 3694 analysts.