Barclays downgraded PayPal Holdings to Underweight from Equal-Weight. [16] It also cut its price target to $53 from $56. The move reflects a more cautious outlook for PayPal’s near-term performance and growth potential.
The downgrade followed PayPal’s third-quarter earnings report. The company beat profit estimates, but the report raised concerns about slowing revenue growth and weakness in its branded checkout business. [18]
Other banks, including JPMorgan, have maintained more optimistic targets. Their views reflect differing assessments of PayPal’s ability to address its challenges and execute its investment strategy. [18]