Updated from 11:20 a.m. to add ratings from more analysts and comments from Jim Cramer.
Each eBay shareholder received one share of PayPal common stock per eBay share. Shares are now trading around $40, above the "when-issued" price of $38 a share. When-issued trading began on July 6, valuing PayPal at around $47 billion. At current prices, PayPal is valued at $50.5 billion.
Several analysts are rating PayPal as an outperform.
"We believe PYPL represents one of the most unique payment plays available to investors," BMO Capital analyst Paul Condra wrote in a research note Monday morning. "We believe the combination of PayPal's core business, along with its newer acquisitions including Braintree, Venmo, Paydiant, PayPal Credit, and Xoom (XOOM) (pending), presents a differentiated product portfolio that offers strong exposure to many fast-growing segments of payments, such as mobile and P2P, while providing unique synergy opportunities across the platform including direct-to-bank payments (i.e., ACH), remittance services, and point-of-sale credit."
Condra rates PayPal as outperform with a price target of $46.
"I think Paypal could easily trade to $50 based on the 2016 earnings estimates I saw today," said TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio. "It will become the de facto way to pay the burgeoning payments category."
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Baird analyst Colin Sebastian wrote in a research note Monday morning, "PayPal is setting the global standard for online payments with trusted consumer brands and significant scale and reach. Now free from eBay, we believe PayPal can also accelerate newer initiatives beyond its core wheelhouse business (e-commerce)."
Sebastian rates PayPal as Outperform with a price target of $45.
SunTrust analyst Bob Peck initiated coverage of PayPal with a Buy rating and a $45 price target as well, noting PayPal's leadership in the digital payments market.
Still, investors may want to hold off and let the hype die down, says Jonathan Morgan, deals analyst at The Edge Consulting Group. "You need to get in pre-spin in order to really get the value of the situation because everyone's looked at this already and you may have missed out," he said in an interview. He advises investors to wait for the price to come down before buying.