PayPal (PYPL.US) core checkout business growth delays Bank of America downgrades its rating to “neutral”

The Zhitong Finance App learned that Bank of America Securities downgraded the rating of PayPal Holdings (PYPL.US) due to delays in the process of reviving the growth of the payment giant's core brand's checkout business. The investment bank downgraded the company's stock rating from “buy” to “neutral,” and also lowered its target price from $93 to $68.

Bank of America analysts pointed out, “We originally anticipated that product innovation and the upgraded checkout experience would drive an increase in the usage rate of the PayPal button during the checkout process. However, the reality is that the growth of its branded checkout business will slow in the fourth quarter, and 2026 is expected to be a year of increased investment.”

According to the research report, “We still believe that PayPal has more than 400 million consumer and merchant accounts and that the pace of innovation is accelerating under the leadership of new management are all positive factors; but until we see an improvement trend in its business, we think risk and reward are in balance.”