PayPal (PYPL) PT Raised to $95 at Oppenheimer
Oppenheimer raised its price target on PayPal (NASDAQ: PYPL) to $95.00 (from $90.00) while maintaining an Outperform rating.
Analyst Glenn Greene commented, "PayPal delivered relatively in-line results as revenue grew 22% Y/Y in CC and EPS of $0.58 (+28% Y/Y) beat our/Street's $0.56 estimates. Total payment volume (TPV) growth of 27% Y/Y (CC) was stable with 1Q, led by 30% CC Merchant Services growth. Operating margin was in line at 21.3%, as higher transaction expenses were offset by ~7% normalized non-volume expense growth. PYPL raised its CY18 outlook, calling for 16-18% CC revenue growth (from 15-16% CC) and 22-24% EPS growth (~50bps increase). Notably, PYPL anticipates ~$0.08-$0.10 dilution to FY19 EPS from recent M&A transactions (accretive in FY20). We maintain our Outperform rating and raise PT to $95 (from $90). Our greater than normal valuation flexibility considers PYPL's unique competitive position within the large online payments market."