Analyst Note| Brett Horn, CFA |
PayPal's growth in the third quarter remained fairly strong on an absolute basis, though it was slower compared with recent results. This is largely due to the expected wind-down of its eBay relationship and the fact that PayPal is running up against difficult comparisons. We think the quarter showed that PayPal’s trajectory going forward might not be completely smooth and that the current market price reflects more of a best-case scenario from a long-term perspective. We will maintain our $147 per share fair value estimate for the narrow-moat firm.