Payments system PayPal is set to start trading on the Nasdaq on Monday under the stock ticker "PYPL."

The company officially split with parent e-commerce company eBay Inc. on Friday. The move was first announced in September 2014.

After trading on a "when-issued" basis, trading that is not open to the general public, the stock is set to open at $38.39.

In premarket trading, shares jumped $1.46, or 3.8 percent, to $39.85.

R.W. Baird analyst Colin Sebastian initiated coverage on the company with an "Outperform" rating and $45 12-month price target, meaning he expects the stock to reach $45 over the next year.

"We view PayPal as part of a select group of online platform companies that are well positioned for long-term growth and market share expansion," he said. "More specifically, PayPal is setting the global standard for online payments with trusted consumer brands and significant scale and reach."

Growth opportunities include gaining market share in the online and mobile payments arena. There's also room for growth in money transfer and in-store payments, he said.

PayPal has said its goal going forward is to get more merchants to accept its payments in stores. It also wants PayPal users to pay with the service two or three times a week rather than the current average of two or three times a month. PayPal also plans to grow internationally via its acquisition of Xoom, which lets users send money from the U.S. abroad.

--Associated Press