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.

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

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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.