Oppenheimer Remains Bullish Ahead of PayPal's (PYPL) 3Q Report

October 18, 2016 9:56 AM EDT
Get Alerts PYPL Hot Sheet
Price: $41.69 -1.51%

Rating Summary:
    26 Buy, 15 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 25 | Down: 28 | New: 8
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Oppenheimer reiterated an Outperform rating and $43.00 price target on PayPal (NASDAQ: PYPL) ahead of the company's 3Q earnings report. Oppenheimer estimates 27% total payment volume growth to $88.6B (vs. Street's $88.3B estimate). Revenue is expected to be $2.65B, In line with consensus estimates, and Adjusted EPS of $0.34 (vs. Street's $0.35).

Analyst Glenn Greene commented, "Heading into 3Q16 earnings (Thurs., 10/21, after market close), we affirm our Outperform rating and $43 price target for PayPal. We remain attracted to the company's unique digital payments assets (including Braintree, Venmo, Xoom) and impressive growth profile. We view the recently announced V/MA strategic partnerships as an important validation of PYPL's role in the payments ecosystem, and suspect transaction margin concerns are overblown. Accordingly, we would not preclude that PYPL reiterates its medium-term outlook with earnings. For 3Q16, PYPL expects revenue to grow 19-21% (~17-19% organic, by our estimate) in constant currency to a range of $2.62-2.67B, and adj. EPS in a range of $0.33-0.35. At ~22.5x our FY17E EPS, we believe PYPL shares are attractively valued."

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 $39.48 yesterday.

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