Meeting With PayPal Management Reinforces Barclays' Conviction Of Growth Potential

After meeting with Paypal Holdings Inc (NASDAQ: PYPL)'s chief financial officer John Rainey, Barclays analyst Darrin D. Peller maintains his Overweight raring and bullish $46 price target.

Management provided more details on medium-term guidance, showing improvement in customer acquisition and engagement, which bolsters the 100–200 bps of expected revenue growth the company released with its updated guidance.

Rainey also mentioned P2P volume growth has placed pressure on PayPal’s take rate, with PayPal having positioned Venmo for monetization in 2017.

“We estimate that roughly 4 million of PayPal’s ~15 million merchants are Braintree merchants, and would expect the monetization to occur through these sellers first,” said the analyst.

At last check, PayPal shares were trading up 0.71 percent at $39.73.

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