PayPal Shares Jump on KeyBanc Capital Markets Price Target Boost

Shares of digital payment processor PayPal were on the rise in Tuesday’s session after KeyBanc Capital Markets analyst John Beck raised his price target on the stock.

Beck has raised his target on shares of PayPal from $100 to $105 citing his optimism for the company’s new Venmo debit card.

According to the analyst, the card “opens up the offline world of commerce” to Venmo. He noted, “Peer-to-peer (P2P) has served as a fantastic engine to create a substantial consumer base and recent product enhancements create monetization opportunities, which could transform these platform from ‘loss-leaders’ to ‘money makers.”

Beck has estimated $93 billion of Venmo peer-to-peer volume for 2019 and also projects that every $5 billion of spending on Venmo debit cards could boost earnings per share by 2 cents.

PayPal has recently launched Funds Now, which offers instant payouts to businesses using PayPal for their transactions. The feature is offered to all companies in good standing with PayPal.

Bill Ready, EVP and COO of PayPal, said in an interview that typically funds from a payment to a seller could days or weeks to come into a businesses’ account. He remarked, “That means several days or weeks of sales held up that you can’t reinvest back into the business.”

Disclaimer: We have no position in Paypal Holdings Inc. (NASDAQ: PYPL) and have not been compensated for this article.