Bank of America downgraded PayPal to Neutral and cut its price target to $68 from $93 as the company continues to face sluggish branded-checkout momentum and ongoing consumer-spending softness into November; shares were trading around $60.98. Analyst Mihir Bhatia said recent product upgrades have not increased button usage, management expects a meaningful slowdown in branded-checkout growth in Q4 and views 2026 as an investment year, prompting cuts to 2026–27 EPS to slightly below consensus. The note underscores risks that PayPal may be ceding share to rival digital wallets and that heightened investment could cap near-term upside until clear signs of a sustained turnaround appear.
Bank of America Securities analyst Mihir Bhatia downgraded PayPal from Buy to Neutral and cut the price target to $68 from $93, citing slower progress in revitalizing branded-checkout growth; shares were trading around $60.98, down 0.36% at last check. Bhatia reports that product upgrades and a refreshed checkout experience have not driven the expected increase in button usage, and that management now expects Q4 branded-checkout growth to slow meaningfully — the weakest expansion in several years — with softness continuing into November. He has lowered 2026 and 2027 earnings forecasts to slightly below consensus and emphasized that management views 2026 as an investment year, which should cap near-term upside. The analyst warned slower branded-checkout momentum could signal PayPal is ceding share to rival digital wallets, and noted the company’s customer mix skews to middle- and lower-income households with greater retail and discretionary exposure, implying heightened sensitivity to consumer spending trends.
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