Compass Point Upgrades PayPal (PYPL) to Neutral Amid CEO Transition, Priced-In Uncertainty

PayPal Holdings Inc. (NASDAQ:PYPL) is one of the best large cap stocks to buy under $50. On February 3, Compass Point upgraded PayPal to Neutral from Sell with a price target of $51, which was brought down from $55.

At the same time, TD Cowen lowered its price target for PayPal Holdings Inc. (NASDAQ:PYPL) from $65 to $48 with a Hold rating. The firm pointed to disappointing Q4 2025 exit rates and a weak 2026 outlook, characterized by sluggish performance in branded online checkout and high investment costs. As a result, the analyst labeled 2026 another transition year, predicting the stock will likely remain stagnant in the near term as management attempts to reset execution.

Additionally, Bank of America analyst Mihir Bhatia lowered the firm’s price target on PayPal to $48 from $68 with a Neutral rating after the company announced a surprise CEO change and below-expectation Q4 2025 results with FY 2026 guidance. BofA noted that while investors debate whether PayPal’s issues are systemic or management-related, shares are unlikely to recover until new leadership proves effective.

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.

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