Shares of PayPal Holdings Inc. PYPL, +1.80% are up 3.7% in Monday morning trading after Morgan Stanley reiterated its bullish view on the stock. Morgan Stanley analyst James Faucette wrote Monday that PayPal has maintained its strong lead in online acceptance, with 79% of the top 500 online merchants accepting its wallet as of the first quarter. Amazon.com Inc.'s AMZN, +0.05% Amazon Pay is present at 12% of the top 500 online retailers. "We expect PayPal to continue growing at or above the pace of eCommerce, and the network benefit of being a leader among merchants should continue to drive engagement higher," Faucette wrote. He added that Bitcoin BTCUSD, -4.65% acceptance remained unchanged during the quarter and is still presently a payment option for just four of the top 500 retailers. "While Bitcoin seems unlikely to challenge Visa V, +0.93% Mastercard MA, +0.39% PayPal and company in online acceptance, we recognize that a number of cryptocurrencies may be better designed for payments functionality," Faucette wrote, but he hasn't seen much new acceptance of other types of cryptocurrencies from retailers other than Overstock.com Inc. OSTK, -0.14% PayPal shares are up 78% over the past 12 months, compared with a 12% rise for the S&P 500 SPX, +0.33%