Jefferies Reiterates Buy on PayPal (PYPL) as Venmo Gains Popularity

Jefferies reiterated a Buy rating and $44.00 price target on PayPal (NASDAQ: PYPL) as the company's Venmo product gains popularity. PYPL announced on the latest earnings call they are starting a pilot this quarter to enable PYPL merchants with a "Pay With Venmo" button. By the end of 2016, all Venmo users are expected to have the capability to buy from any of PYPL's ~10M merchants.

Analyst Jason Kupferberg commented, "In recent years, PYPL's Venmo product has become a very popular person-toperson (P2P) payments app, especially among millennials, but to date has not been monetized. On the latest earnings call, PYPL outlined plans to enable Venmo users to shop at PYPL's ~10M merchants by the end of 2016. Our scenario analysis suggests these efforts could be accretive to 2017 EPS by about 1-4%. Maintain Buy and our positive thesis (scarcity value, incumbency, growth strategy)."

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 $36.21 yesterday.

You May Also Be Interested In

• 'Ocean of opportunity': Wolfe initiates SpaceX at Buy ahead of historic IPO
• Nvidia pitches Vera CPU to Chinese clients with August delivery target
• UBS Reiterates Neutral Rating on Clorox (CLX) as External Challenges Persist