Analysts at Jefferies initiated coverage of PayPal Holdings Inc. on Tuesday with a buy rating and a $44 price target, 20% above its current price of $36.39 per share. Jefferies analyst Jason Kupferberg cited PayPal's high growth, secular tailwinds, its global brand and large market cap as reasons for the buy rating. PayPal's direct relationship with its nearly 10 million merchants and 169 million consumers are positives, he said. Kupferberg did, however, note that PayPal has much work to do in the in-store payments market. He said Apple Inc.'s Apple Pay may become a competitive threat over time, but is not a treat in the near-term.
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