Sanford C. Bernstein analyst Harshita Rawat upgraded PayPal Holdings Inc. on the likelihood of positive revisions in 2020 and long-term optionality for growth acceleration.

Rawat wrote that there could be positive revisions due to tailwinds from PayPal's partnerships, pricing and its acquisition of Honey Science Corp. Aside from partnerships, the analyst said PayPal also has options for long-term growth from potential offline-to-online convergence and better execution in areas that are either under-monetized of under-invested.

The analyst noted the company's sustained potential for margin expansion given that underlying gross profitability drivers have started to stabilize.

Rawat upgraded PayPal to "OP" with a price target of $130.