PayPal (PYPL): Don't Sweat the 2020 EBAY Renewal - Jefferies

Jefferies analyst, Ramsay El-Assal, reiterated his Buy rating on shares of PayPal (NASDAQ: PYPL) noting that the most likely outcome of the renegotiation would be for EBAY to decide to become Merchant of Record in the relationship, taking on many costs/liabilities currently incurred by PYPL (including fraud/chargeback, billing, customer service, etc) in exchange for a larger share of per-transaction economics/profit.

The analyst stated "the EPS impact of a EBAY contract renegotiation should prove manageable because EBAY will have declined to a much lower revenue and earnings contribution for PYPL by 2020 when the contract expires".

No change to the price target of $70.

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 $61.27 yesterday.

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