Mizuho analyst Dan Dolev reiterated a Buy rating on PayPal Holdings, Inc (NASDAQ: PYPL) with a price target of $72, down from $92.
Dolev's e-commerce checkout tracker suggests that Apple Inc (NASDAQ: AAPL) Apple Pay continued weighing on Branded Checkout share in October, as key merchants' outgoing web traffic remains lower than historical levels.
Additionally, PYPL's web traffic share from Temu, a positive catalyst in 3Q, appears more muted in October.
The analyst remains upbeat about PYPL's future growth prospects, given ample opportunities to combine the PayPal and Venmo platforms and create a global digital wallet.
Dolev notes that such measures could soothe concerns about market share losses to Apple Pay.
Dolev projects 3Q revenue and EPS of $7.42 billion (prior $7.41 billion) vs. consensus $7.87 billion and $1.30 (prior $1.23) vs. consensus $1.36.
He expects Q4 revenue and EPS of $7.90 billion (prior $7.93 billion) vs. consensus $7.53 billion and $1.36 (prior $1.41) vs. consensus $1.29.
Price Action: PYPL shares traded higher by 4.25% at $56.70 on the last check Tuesday.