PayPal (PYPL) PT Raised to $297 at Morgan Stanley as Acceptance Hits New Highs

January 27, 2021 3:15 AM EST
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Price: $265.80 -0.36%

Rating Summary:
    46 Buy, 7 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 17 | Down: 15 | New: 47
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(Updated - January 27, 2021 7:00 AM EST)

Morgan Stanley analyst James Faucette raised the price target on PayPal (NASDAQ: PYPL) to $297.00 (from $229.00) while maintaining a Overweight rating after the company's merchant acceptance lead vs. other wallets inches higher as it adds 2 net new internet retailers and maintains industry low attrition in 4Q.

The analyst stated "we saw PayPal's acceptance at the top 500 US internet retailers climb to 80% from 79% last quarter. PYPL's gross merchant attrition rate, meanwhile, came in at 0.5%, slightly below its 2-year average and less than 1/8th of Amazon Pay's this quarter. This acceptance lead and position as a preferred digital wallet option for non-Amazon merchants reinforces our long-term thesis that PayPal can grow its TPV at or above the rate of eCommerce (ex-Amazon; Amazon is
covered by Brian Nowak). However, we could see near-term volatility going into 4Q earnings and its investor day in February, as CY21 and medium-term outlook expectations remain elevated and quite disbursed among its broadening investor base".

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