BTIG analyst Mark Palmer has initiated coverage of PayPal with a Buy recommendation and a $48 price target following the online payment processing company’s recent spin-off from eBay. PayPal officially started trading on its own yesterday with typical tech IPO pop before settling in at around $40 (currently trading at $40.64), though you could previously trade under the PYPLV ticker.
“PYPL represents perhaps the most direct means by which investors can participate in the growth of mobile payments and e-commerce,” writes Palmer. With an online and mobile payment markets worth $2.5 trillion and growing and plenty of cash to invest in growth, Palmer argues that PayPal has a better outlook than mature competitors like MasterCard or Visa.
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