PayPal(US:PYPL) Jin Rong Jie·2025-12-19 03:52Core Viewpoint - PayPal has faced a third downgrade in analyst ratings, with Morgan Stanley lowering its rating from "Neutral" to "Underweight" due to slow progress in brand payment integration and its inability to effectively drive user growth as expected [1] Group 1: Analyst Downgrades - Morgan Stanley downgraded PayPal's rating, citing concerns over the slow and complex improvements in brand payment integration [1] - Bank of America Securities also lowered its rating, agreeing with Morgan Stanley's assessment regarding the sluggish recovery in PayPal's brand payment growth [1] - JPMorgan also downgraded PayPal's rating earlier in the month [1] Group 2: Challenges Ahead - Analyst James Faucette highlighted that PayPal faces additional challenges before 2026, including slow profitability progress with its younger user base, Venmo, and potential narrative risks from "smart e-commerce" [1] - The report indicates that due to slowing growth, PayPal is expected to continue investing to address these challenges and mitigate market share loss, increasing the risk of downward adjustments to its earnings per share [1] Group 3: Financial Management - PayPal's CFO Jamie Miller stated that the company is managing operational expenses with a high level of discipline to support growth while maintaining strong free cash flow performance [1]