Mizuho sees potentially good news for PayPal from China

Mizuho sees potentially good news coming from China that could help reinvigorate PayPal’s Branded Checkout growth. The moat of the company’s “highly profitable” Branded Checkout button has been a key debate surrounding the stock, the analyst tells investors in a research note. The firm’s web traffic analysis shows that Temu, an Amazon-like marketplace for discounted goods from China, is “rapidly growing in popularity.” PayPal is among Temu’s available checkout options, Mizuho points out. The firm’s analysis shows that Temu’s share of incoming web traffic to PayPal has grown 12-times year-over-year. As Temu grows in popularity, the firm expects it to be more meaningful to PayPal’s Branded business. It keeps a Buy rating on the shares with a $92 price target.