BofA Securities resumes PayPal coverage with Underperform rating and $53 target
BofA Securities reinstated coverage of PayPal Holdings Inc. with an Underperform rating and a $53 price target, citing concerns about the pricing strategy for its Braintree service and the commoditisation of unbranded processing. The analyst noted that the branded checkout outlook was cut to 1‑2% growth, down from a prior 2% forecast, and that a recent acquisition talk with Stripe and Advent International had collapsed. The stock was trading at a P/E of 10.53 and a market price of $56.10 at the time of the note.
Why it matters
The lower rating and reduced price target suggest near‑term downside pressure on PayPal’s share price, while the pricing concerns could affect profitability of its Braintree unit. Investors should monitor the impact on earnings expectations and any further guidance from the company.
Key facts
- 1BofA Securities resumed coverage on PayPal with an Underperform rating and a $53.00 price target. investing.com
- 2The rating and target were announced by analyst Matt O’Neill. investing.com
- 3BofA highlighted concerns over Braintree’s pricing strategy and the commoditisation of unbranded processing. investing.com
- 4PayPal’s branded checkout outlook for Q3 was cut to 1‑2% growth, from a previous 2% forecast. investing.com
- 5PayPal was trading at a P/E ratio of 10.53. investing.com
- 6The stock price was $56.10 when the note was issued. investing.com
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.