Needham & Company Starts PayPal (PYPL) at Hold

Needham & Company initiates coverage on PayPal (NASDAQ: PYPL) with a Hold rating.

Analyst Mayank Tandon commented, "While we believe PayPal is positioned at the heart of the digital payments space, a market it pioneered, we are initiating coverage with a HOLD rating based on a fair valuation level relative to mid-teens EPS growth prospects and a broad cross section of payments companies. Although PayPal is a dynamic company that continues to be at the forefront of payments innovation, the field is becoming increasingly crowded and competitive pressures could dampen growth and profitability long term. Accordingly, we encourage investors to wait for a more attractive entry point before committing fresh capital."

For an analyst ratings summary and ratings history on PayPal click here. For more ratings news on PayPal click here.

Shares of PayPal closed at $38.76 yesterday.

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