Cleveland Research downgrades PayPal to Underperform as turnaround looks slow
Cleveland Research says PayPal's turnaround will take time as rivals push prices lower and Braintree gains little market share.
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what happened
Cleveland Research analyst Andrew Dusing cut his rating on PayPal shares to Underperform from Neutral. He said the turnaround started by CEO Enrique Lores, who joined in March, will take time. The multiyear plan centers on cost cuts and artificial-intelligence integration.
Dusing wrote that branded checkout trends looked weaker in the fiscal third quarter ended Sept. 30. Braintree, the unbranded processing service, has had to match discounted rates from Adyen and Stripe without gaining much share. Monday's move followed a downgrade by Bank of America last week. PayPal shares fell 0.6% to $56.34 on Monday.
why it matters
The downgrade signals doubt that the business will recover quickly. PayPal is giving up margin without winning growth, a pressure point for investors in payments. The company reports third-quarter earnings on Oct. 27.
market impact
Payments sector: weak outlook for PayPal weighs on sentiment in PYPL shares.
tags
instruments
sources
- PayPal Stock Gets Downgraded. Why Wall Street Doubts the Turnaround. — Barrons.com, 19 October 2026 at 18:56 UTC
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