PayPal price target raised to $98 from $97 at Citi

Citi raised the firm’s price target on PayPal (PYPL) to $98 from $97 and keeps a Buy rating on the shares. The shares fell 13% post the Q4 report, with the narratives shifting throughout the day, the analyst tells investors in a research note. The firm says the primary culprits of the selloff were the impression that PayPal’s U.S. branded volume growth was at a lower run rate than previously thought, questions regarding international branded checkout competitiveness, particularly given higher contribution to transaction margin, and the impact of the Braintree rationalization. The bar is now lower, which offers a better set up into PayPal’s February 25 analyst day, with the opportunity to offer clarity and highlight medium-term building blocks of improvement, contends Citi.