PayPal DOJ Subpoenas ‘More of a Headline Risk,’ JPMorgan Says
(Bloomberg) -- DOJ subpoenas PayPal received requesting information about anti-money laundering program are “more of a headline risk,” JPMorgan analyst Tien-tsin Huang (overweight) writes in note.
- Risk to PYPL is relatively smaller than peers given digital focus and less dependence on third-party agents
- Question is whether PYPL needs to “beef up” compliance program, but this may not be necessary given the substantial compliance investments to date
- Separately, PYPL’s increases to cross-border pricing (involving U.S.-based buyers or sellers) yesterday are positive; estimates 5c-10c benefit to FY17 EPS, though this is likely included in guidance
- PYPL 34 buys, 15 holds, 2 sells, avg PT $47: Bloomberg data
- NOTE: Jan. 19, Western Union to Pay $586m Over Failure to Stop Fraud
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HALISTER1Source: BFW (Bloomberg First Word)
Tickers PYPL US (PayPal Holdings Inc)
People Tien-Tsin Huang (JPMorgan Chase & Co)
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