Analysts Cut PayPal Targets to $39, $59 and $63 on Growth Slowdown
Truist cut its PayPal price target to $39 from $58, while RBC and Susquehanna lowered targets to $59 and $63 after Q4 2025 earnings. Firms cited slower payment volume growth, take rate compression and a CEO change that triggered cuts to FY 2026 guidance and removal of FY 2027 projections.
1. Analyst Price Target Cuts
Truist lowered its PayPal target to $39 from $58, while RBC and Susquehanna trimmed targets to $59 and $63 after reviewing Q4 2025 performance and outlook.
2. Drivers of Revenue Forecast Reductions
The groups cited slower payment volume growth and compression of take rates, while branded checkout total payment volume growth decelerated to 1% currency-neutral from 5% in Q3.
3. Guidance Revisions and Ratings
An abrupt CEO change prompted a material reduction in FY 2026 guidance and withdrawal of FY 2027 projections, though Truist kept a Sell rating, RBC maintained Outperform and Susquehanna retained Positive.
4. PayPal’s Role in Online Casino Payments
Spree Casino’s integration with PayPal highlights digital wallet demand in online gambling, offering seamless deposits, fast withdrawals, mobile compatibility and enhanced security for users.