PayPal Shares Face Mounting Analyst Skepticism

The stock of digital payments giant PayPal continues to struggle for traction, overshadowing recent strategic successes. Simultaneous price target cuts from two major Wall Street firms at the start of the week have amplified investor concerns, shifting focus squarely onto challenges within the company's core branded checkout business.

Market sentiment took a hit following fresh assessments from Evercore ISI and Deutsche Bank. In coordinated moves on Monday, both institutions reduced their price targets for PayPal shares from $75 to $65. While each firm maintained its neutral rating on the stock, the rationale behind the cuts pointed to persistent headwinds in the "Branded Core" segment.

This synchronized action by analysts is being interpreted as a signal that a anticipated turnaround may be further off than previously hoped. The growth reported in ancillary services, including the Venmo peer-to-peer platform and "Buy Now, Pay Later" offerings, appears insufficient to counterbalance institutional skepticism regarding the primary revenue driver.

Should investors sell immediately? Or is it worth buying PayPal?

Strategic Gains Fail to Impress the Market

Operationally, PayPal has delivered notable advancements. Its PYUSD stablecoin is experiencing rapid expansion, approaching a circulation of $4 billion—a surge of over 200% since September alone. Furthermore, a newly announced partnership with Logicbroker aims to provide merchants with automated e-commerce solutions.

Despite these developments, the market's response remains tepid. Strategic progress is being largely overlooked as the share price reflects a broader crisis of confidence. Since the beginning of the year, the stock has shed approximately 37% of its value, currently trading at €52.53. Even an attractive valuation, with a price-to-earnings ratio around 12.5, and solid quarterly figures have so far failed to attract sustained buying interest.

Investor Focus Shifts to Forthcoming Results

Attention now turns to near-term catalysts for investors. The company's quarterly dividend is payable on Tuesday, December 10. The broader focus, however, is on fourth-quarter performance. Market experts are forecasting an earnings increase of more than 8%, to $1.29 per share. To begin restoring faith among institutional investors, PayPal must demonstrate during this period that it can stabilize profitability margins within its core branded payments business. The coming report is widely seen as a critical test for the company's near-term trajectory.