BofA raises PayPal stock price target to $54 on model update
BofA raised PayPal's (PYPL) price target to $54 from $53, maintaining an Underperform rating. The stock trades at $56.09, with a P/E ratio of 10.52. BofA remains cautious due to European headwinds and lower-quality growth segments. PayPal's Q3 2026 earnings beat EPS estimates but missed on revenue. UBS lowered its target to $60, keeping a Neutral rating.
How this was made
The 30-second read
Why it matters
The lower target may trigger short sellers and prompt investors to reassess valuation.
Market read
Price target cut and mixed earnings could move PYPL stock in the near term.
What to watch
Potential upside from Braintree and Venmo if execution improves.
Background
Analyst price target update follows PayPal's Q3 earnings release showing EPS beat but revenue miss.
Ticker impact
BofA raised PayPal's price target to $54 (down from $53) and noted the stock trades above the new target after Q3 earnings beat EPS but missed revenue.
likely pressure as the market prices in the lower target versus current price
Analyst cut target despite EPS beat, highlighting revenue miss and cautious outlook on branded business.
Market effects
May weigh on broader digital payments sector as analysts signal caution on growth.
US market focus; limited immediate regional effect.
Limited to investors tracking payment processors.
Counterpoint
Buyback activity could support price despite lower target.
Key entities
- analystBofA Securities
Raised price target to $54 and maintained Underperform rating.
- companyPayPal Holdings Inc.
Reported Q3 2026 earnings with EPS beat and revenue shortfall.
