Wells Fargo analyst Timothy Willi believes that following several years of modest margin progress, PayPal is at the start of a multi-year period of annual margin expansion. The analyst argues that the three key drivers of expansion will be moderating declines in PayPal's adjusted transaction revenue rate, stable or small declines in its transaction expense rate, and leverage from the company's non-transaction-based expenses. The combination of significant top-line growth, modest, but consistent, annual margin expansion, and share repurchases should result in EPS growth that justifies PayPal's premium valuation, he contends. Willi reiterates an Outperform rating and $95 price target on the shares.