Oppenheimer On PayPal: Apple Does Not Pose Significant Threat

Oppenheimer's Glenn Greene reiterated his outperform rating and $43.00 price target on Paypal Holdings Inc PYPL despite rumors on Tuesday that Paypal’s relationship with Visa Inc V was going sour.

The analyst remains attracted to the company’s “wide brand recognition, robust consumer/merchant adoption, attractive business model and strong growth prospects.”

Thriving Digital Payment Assets

Greene appreciates PayPal’s digital payment assets including Braintree, Venmo and Xoom, as the assets contain an “impressive growth profile,” which make up a “nearly ubiquitous two-sided platform,” stated the analyst.

Related Link: PayPal Doesn't Deserve A Multiple Higher Than Visa, Mastercard

Additionally, based on street estimates, Greene believes Q2's total present value and transaction revenue “could surprise to the upside.”

Apple’s Impact

Finally, the Oppenheimer analyst thought the recent in-browser Apple Pay announcement was a “relatively benign competitive development” for PayPal.

At time of writing, PayPal was seen trading at $39.35, up 1.46 percent on the day.