PayPay initiated with an Equal Weight at Morgan Stanley

Morgan Stanley initiated coverage of PayPay (PAYP) with an Equal Weight rating and $24 price target The company has built an “overwhelming, young user base” and is driving Japan’s cashless shift, the analyst tells investors in a research note. However, the firm believes that as fintech valuation multiples, particularly in North America, continue to compress, assigning a premium for PayPay versus its global peers would require faster profit growth from its financial businesses.