UPDATE: Canaccord Genuity Starts PayPal (PYPL) at Buy

Canaccord Genuity initiated coverage on PayPal (NASDAQ: PYPL) with a Buy rating and a price target of $43. Analyst Michael Graham sees steady growth and upside potential given secular tailwinds.

"We expect PayPal to continue its steady growth trajectory, benefiting from the long-term shift to cashless payments and continued eCommerce growth. Despite an increasingly complicated online landscape, we think Braintree, One Touch, and Venmo all should enhance the company's growth and contribute to upside potential for estimates. We find the company's position in offline payments less compelling, with risks related to trying to take share from well-entrenched incumbents. However, we are comforted by our perception that the stock is discounting very little offline success. We feel the valuation nearly reflects the growth profile in our base case. However, we see a tangible upside scenario that could lead estimates and the stock higher," said Graham.

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 $33.91 yesterday.

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