PayPal's (PYPL.US) core checkout business growth is delayed, Bank of America lowers its rating to "neutral".

Bank of America Securities has downgraded PayPal Holdings (PYPL.US) rating, citing a delay in the growth of the payment giant's core brand checkout business. The investment bank has lowered the company's stock rating from "buy" to "neutral" and also lowered the target price from $93 to $68. A Bank of America analyst stated, "We originally expected that product innovation and upgraded checkout experience would drive an increase in the usage of PayPal buttons at checkout. However, the actual situation is that the growth of its brand checkout business will slow down in the fourth quarter, and 2026 is expected to be a year of increased investment." The research report stated, "We still believe that PayPal has over 400 million consumer and merchant accounts, and with rapid innovation under the new management, these are all positive factors; however, until we see a clear trend of business improvement, we believe that the risks and rewards are balanced."