Paypal Holdings Inc (NASDAQ:PYPL) stock initially dipped on back of announcing July’s Visa deal. However, though the online payment giant’s stock has climbed from the bottom of the cliff dive back up about 9%, Canaccord analyst Michael Graham downgrades the stock from a Buy to a Hold rating, while cutting the price target from $45 to $40.

Additionally, the analyst maintains his 2016 EPS estimate at $1.48, but lowers his 2017 EPS estimate from $1.80 to $1.69.

Graham believes, “We are optimistic regarding TPV growth in the near term, but we believe the factors driving this (One Touch, Venmo) are well understood and largely reflected in estimates. Meanwhile, higher funding mix-driven transaction expenses stemming from the V and MA deals are likely to pressure margins and temper EPS growth modestly.”

Though Graham sees PYPL stock as a reflection of TPV strength, highlighting Venmo and One Touch as two contributing drivers to assist the acceleration to continue to rise over the next coming quarters, the analyst anticipates a deceleration will hit from about 27% come 2016 to about 18% come 2021.

“Longer term, we see a balance of factors (offline volume potential, competition from Apple & Android Pay) that should keep TPV growth on a path of gentle deceleration. With the multiple now at a less attractive level and the possibility of pressure on EPS estimates from 2017-2020, we believe shares are fully valued at current levels; therefore, we downgrade to HOLD,” the analyst concludes.

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, five-star analyst Michael Graham is ranked #111 out of 4,163 analysts. Graham has a 58% success rate and realizes 11.3% in his annual returns. When recommending PYPL, Graham gains 12.0% in average profits on the stock.

TipRanks analytics demonstrate PYPL as a Buy. Based on 25 analysts polled in the last 3 months, 15 rate a Buy on PYPL, 8 maintain a Hold, while 2 issue a Sell. The 12-month average price target stands at $4.65, marking a nearly 11% upside from where the shares last closed.