Shares of PayPal (PYPL) - Get PayPal Holdings Inc Report were climbing 7.32% to $47.66 during midday trading on Thursday following an upgrade of the stock at Piper Jaffray to "Neutral" from "Underweight" with a $45 price target.

The "ramp up" in competition against PayPal has been slow to emerge, Piper Jaffray analyst Jason Deleeuw wrote. He holds this reduces the downside risks to estimates as secular growth remains strong in the digital payments space.

Deleeuw cautioned that PayPal faces substantial long-term competitive risks including "transaction economics and market share."

PayPal beat expectations for its first quarter financial results on Wednesday, sending shares higher over 6% in after hours trading. 

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