Brokerages launch coverage on PayPay after research quiet period ends

Brokerages initiate coverage on Japanese payments app PayPay PAYP.O as research quiet period ends

Jefferies initiates with a "buy" rating, saying, "our bullish view is driven by PayPay’s unmatched leadership in Japan’s fast-growing cashless payments market, its massive user base and expanding ecosystem"

Adds, the Japanese Government is encouraging the use of cashless transactions by increasing coupons and point rewards at the municipal level and linking ID cards to payments

Analysts at Benchmark say, "PAYP sits at the intersection of three powerful secular tailwinds – cashless adoption, embedded finance, and platform monetization"

PAYP secured a valuation of $12.7 billion in its Nasdaq debut after shares opened at $19, compared with the $16 offer price

Deutsche Bank starts coverage with "hold" rating "due to PAYP’s premium valuation relative to other high-growth fintech peers, execution risk associated with the company’s crucial, but early-stage, cross-selling strategy into financial services"

As of last close, stock up 31.4% since its debut on March 12