Truist Lowers PayPal (PYPL) Estimates Due to Slower Volume, Take Rate Compression

PayPal Holdings Inc. (NASDAQ:PYPL) is one of the best stocks under $50 to invest in. On February 10, Truist lowered the firm’s price target on PayPal to $39 from $58 and kept a Sell rating as part of the firm’s broader research note. The note updated models for payment companies following Q4 2025 earnings. Truist cited lower estimates for the company due to a combination of slower volume growth and take rate compression.

Furthermore, on February 4, RBC Capital lowered its price target on PayPal to $59 from $91 and maintained an Outperform rating. The firm noted that the abrupt CEO change indicates the pace of turnaround for Branded Checkout’s TPV growth was moving too slowly, leading to a material reduction in FY 2026 guidance. Consequently, the firm also withdrew the FY 2027 projections that were previously provided during PayPal’s last Investor Day.

On the same day, Susquehanna lowered its price target on PayPal Holdings Inc. (NASDAQ:PYPL) to $63 from $90 with a Positive rating. Although the firm noted that some initiatives showed progress, it expressed disappointment that branded checkout growth slowed to 1% on a currency-neutral basis, down from 5% in Q3. The firm highlighted that this deceleration was driven by headwinds in both US and international retail, as well as a slowdown in high-growth verticals like crypto.

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PayPal Holdings Inc. (NASDAQ:PYPL) operates a technology platform that enables digital payments for merchants and consumers worldwide. The company operates a two-sided network at scale that connects merchants and consumers.

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