PayPal Downgraded to Neutral with $55 Target; Unveils $1B Blockchain Invoice Project
PayPal shares slid after KGI Securities downgraded the stock to Neutral with a $55 target, as the Nasdaq fell 2.36% and S&P 500 dropped 2.24%. PayPal partnered with TCS Blockchain to settle over $1B in freight invoices using PayPal USD, aiming to speed payments and cut fees.
1. Stock Slump and Analyst Downgrade
Shares dropped 1.58% to $44.91 as KGI Securities cut its rating from Outperform to Neutral and set a $55 price target on March 2, reflecting growing caution among analysts.
2. Broader Market Pressure
PayPal’s decline coincided with a 2.36% drop in the Nasdaq and a 2.24% fall in the S&P 500, underscoring external market headwinds weighing on its share performance.
3. Blockchain Partnership with TCS
The company teamed with TCS Blockchain to pilot on-chain settlement for freight invoices, targeting over $1 billion in annual flows using PayPal USD to accelerate B2B payments and reduce settlement fees.
4. Technical and Forecast Overview
PayPal trades 12.5% below its 20-day and 8.4% below its 100-day SMA, with a neutral 50 RSI and bearish MACD. Analysts expect April 28 earnings of $1.28 EPS and $8.09 billion revenue, valuing the stock at 8.4x P/E and a consensus Hold rating.