Renaissance Macro Securities LLC Believes Paypal Holdings (NASDAQ: PYPL) Still Has Room to Grow

By Austin Angelo

Renaissance Macro Securities LLC analyst Howard Mason reiterated a Buy rating on Paypal Holdings (NASDAQ: PYPL) today and set a price target of $55. The company’s shares closed last Friday at $47.72, close to its 52-week high of $48.10.

Mason noted:

“We are raising our price target on PYPL to $55 reflecting a 15x multiple of 2018 EBITDA which matches that of Visa, and reflects our view that power in the payments ecosystem lies in the ability to shape transaction-routing through branding the consumer payments experience. Despite meaningful investment in Visa Checkout, Visa is losing this brand rivalry to PayPal which has the capabilities to engage merchants more broadly and more deeply, and can now extend its franchisee to physical point-of-sale through integration with Android Pay. PYPL’s edge is in generating experiences that appeal to consumers as illustrated by 10-11% growth both in active customer accounts and transactions/account.”

According to TipRanks.com, Mason is a 2-star analyst with an average return of 3.2% and a 71.4% success rate. Mason covers the Financial sector, focusing on stocks such as American Express, Bank of America, and JP Morgan Chase.

Currently, the analyst consensus on Paypal Holdings is Strong Buy and the average price target is $50.47, representing a 5.8% upside.

In a report issued on April 20, Stifel Nicolaus also reiterated a Buy rating on the stock with a $49 price target.

The company has a one year high of $48.10 and a one year low of $34. Currently, Paypal Holdings has an average volume of 6.5M.

Based on the recent corporate insider activity of 65 insiders, corporate insider sentiment is negative on the stock. Most recently, in November 2016, Tomer Barel, the SVP, Chief Risk Officer of PYPL sold 28,768 shares for a total of $1,203,430.

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PayPal Holdings, Inc. enables digital and mobile payments on behalf of consumers and merchants worldwide. It provides a simpler and safer way for businesses of all sizes to accept payments from merchant websites, mobile devices and applications, and at offline retail locations through a range of payment solutions. It also facilitates person to person payments through PayPal, Venmo, and Xoom. The company was founded in January 2015 and is headquartered in San Jose, CA.