Compass Point Upgrades PayPal (PYPL) to Neutral Amid CEO Transition, Priced-In Uncertainty

Core Viewpoint - PayPal Holdings Inc. is currently viewed as a large-cap stock under $50, with mixed analyst ratings and price target adjustments reflecting concerns over its performance and leadership changes [1][3]. Group 1: Analyst Ratings and Price Targets - Compass Point upgraded PayPal to Neutral from Sell, adjusting its price target to $51 from $55 [1]. - TD Cowen lowered its price target for PayPal from $65 to $48, maintaining a Hold rating due to disappointing Q4 2025 exit rates and a weak outlook for 2026 [2]. - Bank of America reduced its price target on PayPal to $48 from $68, citing a surprise CEO change and below-expectation Q4 2025 results [3]. Group 2: Company Performance and Outlook - PayPal is experiencing sluggish performance in branded online checkout and high investment costs, leading analysts to label 2026 as another transition year [2]. - The company is facing uncertainty regarding whether its issues are systemic or related to management, with shares expected to remain stagnant until new leadership demonstrates effectiveness [3]. Group 3: Company Overview - PayPal operates a technology platform that facilitates digital payments for merchants and consumers globally [4].