PayPal gains after analysts speculate on possible activist interest
Justin Sullivan

PayPal (NASDAQ:PYPL) rose 1.9%, gaining for a third straight day, at least partly after analysts speculated that the fintech company could become a target for activist investors. 
It may be an opportune time for an activist investor to target PayPal as CEO Dan Schulman is about to turn 65 and the board will have to look at succession plan, Gordon Haskett's Don Bilson wrote in a note on Thursday, a note that was likely spurred on by a Bernstein also discussing if PayPal could become an activist target. If an activist wants to help dictate the succession plan, now would be the time to enter. 
Possible activist funds that could target PayPal include behemoth Elliott Management, DE Shaw, which owned a stake in Q1, Politan Capital and possibly Bill Ackman's Pershing Square, according to Bilson.
The Bernstein note, written by analyst Harshita Rawat, is entitled "Can an activist get involved and what can they do?" Rawat highlights that PYPL is not trading at levels witnessed not since 2018 and has underperformed many of its large cap peers including Visa (V) and Mastercard (MA)
"We are not advocating for an activist in the stock, rather highlighting what corporate actions, in our view, can drive value-creation for shareholders e.g.,1. Better execution & speedier innovation through organizational changes, and narrower but more focused set of priorities," Rawat wrote in the note.
Rawat also advocated for potential "bold M&A" for PayPal (PYPL). Recall Bloomberg in October reported that PYPL had approached Pinterest (PINS) about a possible takeover. PayPal later said that it wasn't pursuing a PINS deal.
Pinterest (PINS) stock popped 16% last Friday after a WSJ report that activist Elliott Management had taken a stake in the social-media company.