Despite Apple Pay's Impact, PayPal's Growth Prospects Remain Strong: Analyst

Mizuho analyst Dan Dolev reiterated a Buy rating on PayPal Holdings, Inc PYPL with a price target of $72, down from $92.

Dolev's e-commerce checkout tracker suggests that Apple Inc AAPL Apple Pay continued weighing on Branded Checkout share in October, as key merchants' outgoing web traffic remains lower than historical levels. 

Additionally, PYPL's web traffic share from Temu, a positive catalyst in 3Q, appears more muted in October. 

The analyst remains upbeat about PYPL's future growth prospects, given ample opportunities to combine the PayPal and Venmo platforms and create a global digital wallet. 

Dolev notes that such measures could soothe concerns about market share losses to Apple Pay. 

Dolev projects 3Q revenue and EPS of $7.42 billion (prior $7.41 billion) vs. consensus $7.87 billion and $1.30 (prior $1.23) vs. consensus $1.36. 

He expects Q4 revenue and EPS of $7.90 billion (prior $7.93 billion) vs. consensus $7.53 billion and $1.36 (prior $1.41) vs. consensus $1.29.

Price Action: PYPL shares traded higher by 4.25% at $56.70 on the last check Tuesday.