PayPal (PYPL) Bullish View Reiterated at Nomura as Bull-Bear Debate Wages Post Visa Deal

Nomura Securities analyst Bill Carcache reiterated a Buy rating and $54 price target on PayPal (NASDAQ: PYPL) following results and as the bull-bear tug of war intensifies post the Visa deal.

Carcache commented, "PYPL reported EPS of $0.36 (at the high end of guidance), better than our estimate of $0.35 and in line with consensus. Relative to consensus, results were characterized by stronger-than-expected transaction volume and revenue growth, offset by higher expenses. The solid quarter and better outlook took a back seat to the terms of the V deal during the conference call. While there are many facets to the deal, some investors walked away from the call feeling like it is incrementally more difficult to have confidence in 2017 estimates given the significant uncertainty that the deal introduces. While we view the deal as a significant positive and expect more partnership announcements between PYPL and other players in the payments ecosystem over the coming months, we acknowledge that shares may face near-term volatility as investors grapple with 2017 uncertainty. FY16E EPS from $1.47 to $1.49; FY17E EPS at $1.79."

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 $40.13 yesterday.

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