PayPal (PYPL) stock has declined 8.5% over the past month and is down 28% year-to-date amid intense competition and concerns about a slowdown in growth. Top Bank of America analyst Mihir Bhatia downgraded PayPal stock from Buy to Hold and slashed the price target to $68 from $93, saying “risk-reward is balanced.”
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In contrast, Bhatia upgraded Visa (V) stock to Buy from Hold, noting solid upside potential and stablecoin prospects.
Top Analyst Moves to the Sidelines on PayPal Stock
Bhatia noted that PayPal’s efforts to revive growth in its core branded checkout are taking longer than expected and are limiting near-term upside potential. The analyst had expected product innovation and the upgraded checkout solution to boost PayPal usage at checkout. However, Q4 is expected to see a slowdown in branded checkout growth. Moreover, 2026 will be an investment year, as the company tries to boost its business.
While Bhatia views PayPal’s base of 400 million consumers and merchant accounts, as well as the faster pace of innovation under new management, favorably, he thinks that the stock’s risk-reward looks balanced. He prefers to stay on the sidelines until there is more clarity on the company’s turnaround efforts achieving the desired results.
Bhatia lowered his earnings estimates for 2026 and 2027 by 2% and 4%, respectively, to reflect slower growth and higher investments.
Is PYPL Stock a Buy, Sell, or Hold?
Given the ongoing challenges, Wall Street has a Hold consensus rating on PayPal Holdings stock based on 19 Holds, nine Buys, and three Sell recommendations. The average PYPL stock price target of $79.23 indicates 28.4% upside potential.
