Edward Jones Reiterates Hold Rating on PayPal (PYPL)

Edward Jones analyst Logan Purk reiterated a Hold rating on PayPal (NASDAQ: PYPL)

The analyst comments "We rate PayPal shares a Hold. PayPal has embraced a strategy shift, focusing on its largest accounts that drive a majority of payment volume across the platform. While this strategy has led to consistent payment-volume growth, other measures have deteriorated for the company. While new account growth was expected to moderate, new accounts have actually shrunk. More importantly, profit per transaction has declined after initially stabilizing in previous quarters. This is largely due to stronger growth in PayPal's Braintree product, which has lower profit margins. We think PayPal-branded products showing slower growth is partly due to increased competitive pressure. Therefore, we have lowered our growth estimates for the company. We think shares reflect our reduced growth outlook and are appropriately valued."

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 $69.43 yesterday.

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