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Fly News Breaks for February 27, 2020
MA, PYPL, V
Feb 27, 2020 | 13:40 EDT
Stephens analyst Brett Huff noted that PayPal (PYPL) lowered its Q1 revenue guidance, citing the ongoing coronavirus impact while also pointing out that stronger performance elsewhere in the business is offsetting some of the virus impact. PayPal's pre-announcement follows a similar one from MasterCard (MA), noted Huff, who sees it as increasingly likely that Visa (V) will update guidance in the near future as well. He remains a buyers of these stocks as he thinks this is a temporary setback and he reiterates an Overweight rating on PayPal shares.
News For PYPL;MA;V From the Last 2 Days
PYPL
Jun 2, 2020 | 07:26 EDT
Deutsche Bank analyst Bryan Keane raised the firm's price target on PayPal to $183 from $147 and keeps a Buy rating on the shares. The analyst expects PayPal to sustain elevated payment volume growth rates above its medium term guidance driven by higher e-commerce user adoption and engagement while expanding adjusted operating margins. In addition, strength improved further into early May and PayPal likely hasn't seen any material change in "strong" growth rates despite economies reopening globally, Keane tells investors in a research note.
V
Jun 1, 2020 | 16:43 EDT
According to a regulatory filing, Visa said that, in May, total U.S. payments volume declined 5% year-over-year, a 13 percentage point improvement over April. Debit grew 12% and credit declined 21% year-over-year in May, a 17 ppt and 9 ppt improvement over April, respectively. The continued distribution of Economic Impact Payments and the relaxing of shelter-in-place restrictions in a number of states are driving these trends. International markets are at various stages of reopening and recovery. In aggregate, recovery in international markets in which we process the majority of transactions lagged the U.S. in May. Across most of Europe, as well as Australia, Canada and Japan, the trajectory so far is comparable to the U.S. India and Singapore are slowly reopening. A few markets, such as New Zealand, Denmark and Chile, have positive year-over-year constant dollar growth in May. Global processed transactions declined 12% in May, a 12 ppt improvement over April. Since April, the mix has shifted to larger ticket transactions. Cross-border volumes excluding intra-Europe transactions declined 45% in May, a 6 ppt improvement over April. As we have indicated before, cross-border volumes excluding intra-Europe transactions drive our international transaction revenues. Travel related cross-border volumes (card present and card not present) declined 78% in May while cross-border eCommerce (excluding travel) continued to grow strongly, up 18%. Cross-border volumes including intra-Europe transactions declined 35% in May, an 8 ppt improvement over April.
V
Jun 1, 2020 | 08:29 EDT
Wedbush analyst Moshe Katri raised the firm's price target on Visa to $220 from $200 and keeps an Outperform rating on the shares. The analyst believes gradual improvements in card metrics trends, as well as travel spending will help further expand forward P/E multiples from COVID-19's lows, getting closer to pre-COVID-19 levels.