Halister News

(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