PayPal assumed with a Neutral at Piper Sandler

Piper Sandler assumed coverage of PayPal (PYPL) with a Neutral rating and $74 price target PayPal is currently in the midst of a strategic pivot with new management attempting to create a monetizable, omnichannel commerce hub for its 436M accounts, the analyst tells investors in a research note. Piper is “cautiously optimistic” on the company’s ability to execute on this large opportunity, but says doing so will likely require significant investment spend in the coming years that will weigh on margins. As such, it believes the shares are appropriately priced at a slight discount to peers.