Rothschild & Co. Redburn Downgrades PayPal (PYPL) to Sell Due to Erosion of Competitive Edge in Agentic Commerce

PayPal Holdings Inc. (NASDAQ:PYPL) is one of the most undervalued quality stocks to buy right now. On January 28, Rothschild & Co. Redburn downgraded PayPal to Sell from Neutral and lowered its price target to $50 from $70.

Although the firm acknowledged PayPal’s scale should position it well for agentic commerce, it believes that this advantage will diminish as consumer behaviors shift. The firm noted that the marginal consumer is increasingly opting for alternative payment methods, with Shop Pay, Stripe Link, Apple Pay, and Google Pay identified as the platforms currently winning incremental users.

A day before this rating, on January 27, Cantor Fitzgerald analyst Ramsey El-Assal began coverage of PayPal with a Neutral rating and a $60 price target. The analyst observed that recent strategic moves have created a more profitable and balanced growth engine for the company’s Venmo, PSP, and Branded units. El-Assal expects this momentum to lead to additional volume and revenue acceleration in FY2026, even with intense competition.

PayPal Holdings Inc. (NASDAQ:PYPL) operates a technology platform that enables digital payments for merchants and consumers worldwide.

While we acknowledge the potential of PYPL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.