Wells Fargo: PayPal Faces Challenging Turnaround Taking Multiple Quarters

Wells Fargo analyst believes turning around PayPal's fortunes is challenging and will take multiple quarters.

Management has focused on neglected aspects like online checkout and wallet investments.

Peer-to-peer transaction volumes have dropped 10% in last 4 quarters, concerning indicator.

Shares are down 31.5% YTD, analyst hasn't seen evidence erosion has ended.

Initiates coverage with Equal Weight rating and $55 price target, 8% upside.