Paypal Holdings Inc (PYPL) Offers Limited Downside and Attractive Risk-Reward: Deutsche Bank
Deutsche Bank analyst Bryan Keane came out with a favorable report on Paypal Holdings Inc (NASDAQ:PYPL), reiterating a Buy rating, with a price target of $42, which represents a potential upside of 19% from where the stock is currently trading.
Keane wrote, “We believe PYPL holds a significant first mover advantage over existing/ future mobile and online payments plays given its scale of ~169m users, 10m+ merchants, and over 2/3rds of the top 100 e-retailers. PYPL remains the most widely used digital wallet and is used 5x more than competing checkout options given its brand name and consumer trust as highlighted by recent Forrester research. We believe PYPL’s roll-out of One Touch will accelerate transaction growth and extend its lead over the competition.”
“Although we believe there will be multiple wallet “winners”, we are confident PYPL is the best way to play the mobile payments trends. Given the shares trading at 13x CY16 EV to EBITDA (in -line with merchant acquirers despite double the top-line growth rate), we see limited downside and like the risk reward of the shares,” the analyst added.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Bryan Keane has a total average return of 11.7% and a 69.7% success rate. Keane is ranked #330 out of 3748 analysts.
Out of the 24 analysts polled by TipRanks, 18 rate Paypal Holdings Inc stock a Buy, 4 rate the stock a Hold and 2 recommend Sell. With a return potential of 21.0%, the stock’s consensus target price stands at $42.84.