Wells Fargo Cuts PayPal Price Target to $48 After Q4 Earnings Miss
Wells Fargo kept PayPal at Hold but cut its price target from $58 to $48 after Truist’s earlier Sell downgrade to $39. Fiscal Q4 2025 revenue rose 3.71% to $8.68 billion and EPS was $1.23, missing estimates by $111 million and $0.06 and triggering the appointment of Enrique Lores as CEO.
1. Analyst Ratings and Price Target Adjustments
On February 19, Wells Fargo reiterated a Hold rating and lowered its price target on PayPal from $58 to $48. Earlier on February 10, Truist Financial downgraded the stock to Sell and cut its target from $58 to $39.
2. Fiscal Q4 2025 Results
In fiscal Q4 2025, PayPal reported revenue of $8.68 billion, up 3.71% year-over-year but $111.49 million below forecasts, and EPS of $1.23, missing estimates by $0.06. These shortfalls were attributed to execution challenges rather than broader industry trends.
3. CEO Appointment and Outlook
Management expressed dissatisfaction with current execution and appointed Enrique Lores as the new CEO and President. Analysts expect share volatility in the short term until Lores implements strategic improvements.