BTIG analyst Mark Palmer weighed in with an optimistic view on shares of Paypal Holdings Inc (NASDAQ:PYPL), after Paypal’s division Braintree disclosed in a blog post that it’s on track to surpass $50 billion in transactions made over its platform this year. Braintree’s rapid growth is attributed to international expansion ‒ the unit now operates in 46 markets across four continents ‒ as well as collaboration with e-commerce platforms and an expanded merchant base.
Palmer observed, “We believe it is important to note that while Braintree now manages payment processing for many of PYPL’s services in addition to its core business, the figures it reported are on a like-for-like basis.” The analyst added, “We believe the recent decline in the company’s share price has created a compelling entry point on perhaps the most direct means by which investors can participate in the growth of mobile payments and e-commerce.”
The analyst reiterated a Buy rating on Paypal shares, with a price target of $48, which implies an upside of 45% from current levels.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Mark Palmer has a total average return of -6.0% and a 39.0% success rate. Palmer has a -17.6% average return when recommending PYPL, and is ranked #3653 out of 3771 analysts.