Nomura Securities Starts PayPal (PYPL) at Buy

Nomura Securities initiates coverage on PayPal (NASDAQ: PYPL) with a Buy rating and a price target of $46.00 following the spin-off from eBay.

Analyst Bill Carcache commented, "The PYPL story is all about optionality. Sources of upside not discounted in the current share price include the potential to: (1) enjoy ~10% EPS upside from upcoming interchange rate reductions in Europe; (2) team up with new partners that were previously off limits to PYPL as an EBAY subsidiary; (3) tap the ~$600bn international remittance market via the recent acquisition of XOOM; (4) penetrate the $25tn physical point of sale (PoS); and (5) receive a take-out premium as a desirable acquisition candidate. We are initiating coverage with a Buy rating and a $46 target price, which implies 26x / 15x our 2017E EPS / EBITDA."

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 $38.39 yesterday.

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