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.

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

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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 to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PYPL and that has 100x upside potential, check out our report about this cheapest AI stock.

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