Truist initiates Sell rating on PayPal, predicts slow profit growth, concerns about lending business.

From Yahoo Finance: 2025-06-23 11:22:00

Truist Securities initiated coverage on PayPal with a Sell rating and $68 price target. Competition from Apple Pay and Shop Pay is affecting PayPal’s core business. Analysts are skeptical about the payoff from new management changes and forecast only 2% profit growth through 2027. PayPal’s lending business growth is also a concern.

While PayPal’s revenue grew 4.8% in the past year, its valuation doesn’t align with its outlook. Truist is cautious about PayPal’s lending business, predicting it could become a liability by 2026. They recommend alternatives like Fidelity National, Mastercard, and Visa. Some analysts differ, advocating for PayPal’s potential as an investment.

Truist suggests looking at other investment opportunities, mentioning AI stocks with higher return potential and limited downside risk. They provide a free report on the best short-term AI stock for interested investors. PayPal’s future is uncertain, and alternative investments may offer better returns and stability.



Read more at Yahoo Finance: Truist Flags PayPal as a Weak Bet, Targets $68