PayPal stock receives a downgrade from the Bank of America
PayPal Holdings Inc (NASDAQ: PYPL) has gained nearly 20% over the past five weeks but a Bank of America analyst is not too excited about the digital payments stock for 2024.
BofA analyst shares view on PayPal stockCopy link to section
On Wednesday, Jason Kupferberg downgraded the financial technology giant to “neutral”. But his $66 price target still suggests about a 10% upside from here.
We see `24 as a transition year, as new CEO/CFO seek to earn Street credibility while driving sustained improvements in top-line metrics, especially transaction profit growth, which will likely take time.
Note that PayPal stock is currently down more than 30% versus its year-to-date high.
Why else did he downgrade PayPal stock?Copy link to section
Jason Kupferberg turned somewhat dovish on the Nasdaq-listed firm today also because the Street expectations are “too high” for 2024.
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The Bank of America analyst agreed in his research note on Wednesday that PayPal remains a “strong brand” with a solid balance sheet but said its shares will still be rangebound in the near term “with valuation/sentiment providing downside support”.
Also on Wednesday, Kupferberg downgraded Toast Inc as well citing rising competition and easing top-line momentum. In the finance space, names he likes include Capital One Financial, Jack Henry & Associates, and Discover Financial Services.
He upgraded all three to “buy” in his research note this morning.
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