Mizuho analyst Dan Dolev reiterated a Buy on PayPal Holdings, Inc
The analyst expressed surprise at the recent CEO appointment. The company named Intuit Inc's
Chriss will be inheriting a challenged but not unfixable story. First and foremost, PayPal will need to change the Apple Inc
Chriss must also decide on the possibility of combining the PayPal and Venmo brands.
Dolev expects a modest positive stock reaction, mainly on improved clarity regarding management change. The price target reflects a discount to Visa Inc
KBW analyst Sanjay Sakhrani had an Outperform rating with a price target of $90.00.
The CEO update adds clarity following news of Dan Schulman's intention to retire earlier this year in February.
Chriss is not among the name brands viewed as top candidates for the role by the investment community.
While his experience in technology and product leadership and with a software platform within the SMB vertical make him suitable for the position, the market will likely perceive this as continued uncertainty regarding the impact he can have on PYPL.
Since he is not an industry insider, Sakhrani thinks it may take some time to assess what the right go-forward strategy would be to reinvigorate growth.
The question remains regarding what that means for investment spend and fundamentals in the near to medium term.
Price Action: PYPL shares traded lower by 4.79% at $60.24 on the last check Tuesday.
