Shares of PayPal Holdings Inc. gained 0.5% in premarket trading Thursday after an analyst at KeyBanc Capital Markets named the payment-processor a “key idea” for 2018. KeyBanc’s Josh Beck is upbeat on the company’s efforts to monetize its Venmo peer-to-peer payment platform by letting users pay for e-commerce items using the Venmo app. ” The Pay with Venmo opportunity brings in incremental customers with higher profit margins and is well positioned to scale,” he wrote in a note to clients Wednesday. Beck has a $90 price target on PayPal shares. His other “key idea” in payments is Vantiv Inc. , as he sees opportunities for the company to drive better-than-expected synergies from its Worldpay deal. PayPal shares have gained 88% so far in 2017, while Vantiv’s stock is up 23%. The S&P 500 also rose 23% in that time.
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