PayPal's (PYPL) recent initiatives to accelerate its Branded Checkout online payments option will be a slow process, with very gradual rates of improvement, Morgan Stanley analysts said in a Wednesday note.

The brokerage notes that it remains unclear when and if PayPal's recent undertakings to boost Branded Checkout will translate into growth, adding that most investors remain skeptical of PayPal reaching the 8% to 10% medium-term growth target.

Morgan Stanley also added that they are apprehensive about PayPal's ability to drive durable monetization improvement in Venmo through increased payment utility.

"The Venmo button isn't driving meaningful improvement in checkout conversion on the largest eComm websites, leading retailers to remove the option shortly after adding it," Morgan Stanley analysts wrote.

Morgan Stanley retained an equal-weight rating on the stock and raised the price target to $75 from $74.

Price: 70.79, Change: -0.66, Percent Change: -0.92