Seaport Global Securities downgraded PayPal (NASDAQ: PYPL) from Neutral to Sell and assigned a $49 price target, citing doubts over the company’s ability to meet its mid-term growth targets amid growing macroeconomic pressures.
The firm expressed skepticism about PayPal’s goal of accelerating Checkout total payment volume growth to 8%–10% by 2027, pointing to expected slowdowns in consumer discretionary spending, declining cross-border activity, and increasing pressure on small and mid-sized businesses—factors it believes will weigh on PayPal’s core businesses, including Braintree and Venmo.
Seaport lowered its earnings forecasts for 2025 and 2026 and now projects 2026 EPS of $5.46, valuing the stock at 9 times that estimate. The firm’s revised outlook places its estimates below current consensus levels.
While Seaport anticipates solid first-quarter results and even sees potential for a short-term relief rally given recent share price weakness, the downgrade reflects broader concerns about PayPal’s ability to deliver on its investor day guidance. The firm advised fading any near-term strength in the stock, citing structural challenges in the company’s growth narrative.
PayPal (NASDAQ: PYPL) plans to announce its first-quarter 2025 earnings results on April 29. Wall Street expects earnings per share of $1.16 and revenue of $7.84 billion.
The stock currently has a consensus rating of Overweight and an average price target of $84.83, implying an approximately 39% upside from current levels.
David Kirakosyan is a seasoned financial journalist with nearly a decade of hands-on experience in covering the U.S. stock markets. Since 2016, he has written thousands of equity news articles, detailed market analyses, and investment insights for trusted platforms like Benzinga, Investing.com, and StreetInsider. David holds a Master of Science in Finance and is a Level 2 CFA® candidate, reflecting his deep commitment to financial expertise and ethical standards. His reporting combines real-world market experience with a strong academic foundation, helping readers make informed decisions backed by reliable information. Read Full Bio
