William Blair analyst Robert Napoli weighed in today with a favorable report on shares of Paypal Holdings Inc (NASDAQ:PYPL), ahead of the company’s September quarter earnings results slated for Wednesday, October 28th. The analyst reiterated an Outperform rating on the stock, without providing a price target.

Napoli wrote, “We believe core fundamental trends (e.g., TPV growth, take rate and active user growth) will remain steady in the September quarter, but visibility into specifics (e.g., separation costs, reported metrics, call format) are less clear as it will be management’s first call as a stand-alone company. We expect management will affirm its 2015 guidance and its longterm objectives. Valuation appears attractive as shares trade in line with slower-growing financial technology peers but grows much faster.”

Furthermore, “We remain attracted to PayPal’s solid market position, exposure to strong secular tailwinds (e-commerce and shift to electronic forms of payment), and management’s efforts to diversify the company beyond the legacy eBay marketplace business. We believe PayPal’s 169 million active accounts and the $11.4 billion of customer funds that are stored at PayPal, which is not FDIC insured, represent a testament to consumers’ trust of PayPal and the value PayPal brings to the payments industry. We continue to believe increasing customer usage from two to three transactions per month to two to four per week remains one of the largest opportunities at PayPal.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Robert Napoli has a total average return of 6% and a 44.8% success rate. Napoli has a 9.3% average return when recommending PYPL, and is ranked #1264 out of 3793 analysts.

Out of the 23 analysts polled by TipRanks in the last 3 months, 13 rate Paypal stock a Buy, 7 rate the stock a Hold and 3 recommend a Sell. With a return potential of 19%, the stock’s consensus target price stands at $41.50.