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BMO a fan of PayPal/Synchrony deal, lifts PT

Published 12/13/2017, 08:45 AM
© Reuters.  BMO a fan of PayPal/Synchrony deal, lifts PT
SYF
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PYPL
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  • via Bloomberg's Lily Katz
  • The sale of PayPal's (NASDAQ:PYPL) consumer-credit book to Synchrony Financial (NYSE:SYF) should free up more cash than expected alongside lower-than-anticipated dilution, says analyst Paulo Ribeiro, boosting his price target on PYPL to $85 from $80. PayPal closed last night at $73.62.
  • The company is targeting free-cash generation of more than $1B annually, but Ribeiro expects in excess of $2.5B. Investors, he says, underestimate the unit's operating expenses, thus overestimating its contribution to the company's bottom line.
  • Previously: PayPal and Synchrony Financial on the rise after new deal (Nov. 16)
  • Now read: PayPal First Look: No End To The Upcycle In Sight


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