Paypal Holdings Inc
Goldman Sachs’ Heath P. Terry maintains a Buy rating on the company, while raising the price target from $47 to $49.
FX-neutral revenue grew 21 percent year-on-year, as compared to 19.5 percent in Q2, driven by FX-neutral TPV growth of 28 percent.
The adjusted operating income, however, came in at $490 million, below the consensus expectations, while adjusted operating margins stood at 18.4 percent, as compared to 19.9 percent for Q3:15.
Terry mentioned that the decline was driven by “mix shift to Braintree and higher-than-expected credit provisions.”
“While investor focus remains on competitive uncertainties, near-term margin pressures from mix shift, and needed investment, we believe TPV growth from the growing ubiquity of the service and incremental engagement from new product offerings like One Touch will drive continued outperformance,” the analyst went on to say.
Mobile TPV growth remained flat sequentially at 56 percent year-on-year, while the take rate was 3.05 percent, below the Q2 levels.
Adjusted operating margins declined 150 bps year-on-year, driven primarily by a decline in transaction margins.
Transaction and loss expenses increased 29 percent year-on-year.
At last check, Paypal was up 8.18 percent at $43.37.
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|Oct 2016||Stifel Nicolaus||Upgrades||Hold||Buy|
|Oct 2016||Evercore ISI Group||Initiates Coverage On||Buy|
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