PayPal: New Targets Laid Out at Investor Day

All in all, we see little in PayPal’s investor day to alter our view of the narrow-moat company’s prospects. Management outlined some new plans, such as unifying its platforms and improving its small merchant offerings. We think these ideas make basic sense, and it is important for companies like PayPal to consistently adjust their approach and adapt to changes in the payment landscape. But we don’t see any of the new ideas unveiled at the investor day as dramatic shifts, and at this point we believe execution of the company’s current strategy is the primary consideration. We will maintain our $104 fair value estimate and see shares as undervalued.