UBS analyst Eric Wasserstrom downgraded PayPal Holdings to Neutral from Buy while raising his price target for the shares to $120 from $101. The stock closed yesterday up 6c to $108.20. The analyst's analysis of PayPal's core operations indicates "limited beat-and-raise potential" over the next two years. Further, his "bull scenario" for Venmo monetization would only add 2% to his current 2020 earnings estimates. While Venmo maintains a leading competitive position in people-to-people payments, this competitive position will translate into "limited" revenue and net income contribution over the next two years, Wasserstrom tells investors in a research note. In addition, the analyst sees limited valuation upside in shares of PayPal at current levels.

DMG Blockchain Solutions (DMGGF) announced a strategic collaboration with PayPal (PYPL) and Energy Web to explore ways to decarbonize the Bitcoin blockchain. The companies are working together on developing methods for transacting on the Bitcoin network which would expand its use as a carbon neutral payment rail, thus advancing its application. DMG, Energy Web, and PayPal are working together to publish a research paper, which we collectively believe will benefit users of the Bitcoin network who would like to take advantage of carbon neutral options in their transactions. PayPal, with its focus on developing its bitcoin payment rail, has been a leader in new payment technologies with the introduction of its enhanced services by integrating blockchain technology, launching the PayPal USD stablecoin with Paxos Trust Company in August 2023 for efficient transactions.