Analyst Maintains Sell on PayPal, Keeps $34 Price Target Unchanged Amid Strategy and Competitive Concerns

Analyst James Faucette of Morgan Stanley maintained a Sell rating on PayPal Holdings, retaining the price target of $34.00.

James Faucette has given his Sell rating due to a combination of factors tied to PayPal’s strategic direction and competitive position. He views the new three-part reorganization as incrementally helpful for clarity and accountability, but not sufficient to address the fundamental headwinds facing PayPal’s core Branded Checkout, Venmo, and Braintree/PSP franchises.

Faucette is concerned that management continues to prioritize buybacks, with free cash flow largely earmarked for repurchases through FY26, instead of materially stepping up investment in product modernization, hardware wallet integrations, and broader Venmo acceptance. He also doubts that Venmo, even as a standalone segment with broader financial services ambitions, can become a major revenue engine, especially as faster-growing competitors like Shopify, Adyen, and Apple Pay strengthen their profitability and competitive advantages; as a result, he maintains a Sell rating and leaves his price target unchanged at $34.

In another report released on April 28, Truist Financial also maintained a Sell rating on the stock with a $45.00 price target.