Although there were execution issues at PayPal Holdings Inc (NASDAQ:PYPL), the departure of John Rainey as CFO was unexpected and shares declined by 2% in after-hours trading on Tuesday, according to BofA Securities.
The PayPal Holdings Analyst: Jason Kupferberg maintained a Neutral rating for PayPal Holdings while keeping the price target unchanged at $118.
The PayPal Holdings Thesis: Rainey had also been executive vice president of Global Customer Operations since 2015, Kupferberg said in the note. Rainey has joined Walmart Inc (NYSE:WMT) where he will be CFO and executive vice president.
“Overall, we believe shares could remain range-bound until the Street is convinced that PYPL’s new strategy (emphasizing average revenue per account (ARPA) over net new adds (NNA)), is taking hold, and gets comfort on PYPL’s normalized earnings power,” the analyst wrote.
“We maintain our Neutral, while recognizing that valuation is in the range of all-time lows,” he added.
PYPL Price Action: According to Benzinga Pro, shares of PayPal Holdings had declined by 3.96% to $104 at the time of publication Wednesday.
Photo: Courtesy PayPal
