PayPal stock price target maintained at $70 by Jefferies on growth concerns

Investing.com - Jefferies maintained its Hold rating and $70.00 price target on PayPal (NASDAQ:PYPL) stock Wednesday, citing limited visibility into branded payment volume acceleration. According to InvestingPro data, PayPal, currently valued at $66 billion, appears undervalued despite its recent 9% decline over the past week. The company maintains a perfect Piotroski Score of 9, indicating strong financial health.

The firm expects PayPal’s branded total payment volume (TPV) to remain at 5% growth in the third quarter, as easing tariff headwinds are being offset by softer international spending.

Transaction margin dollar growth is anticipated to approach the lower end of the third-quarter guidance range, partly due to transaction losses stemming from a service outage in Germany.

Jefferies expressed concern about the "lack of visibility into an eventual branded acceleration" and noted that targeted initiatives have not yet delivered tangible benefits for the payments company.

The research firm also cautioned about potential risk to current fiscal year 2026 Street estimates for transaction margin dollars, suggesting PayPal’s growth story remains "stuck" for the time being.

In other recent news, PayPal has announced several key developments. Goldman Sachs downgraded PayPal’s stock from Neutral to Sell, citing transaction margin headwinds, including interest rate pressures and changes in credit product dynamics. Meanwhile, Wolfe Research also downgraded PayPal from Outperform to Peerperform, setting a fair value range of $70-$80 based on future earnings projections. Despite these downgrades, Citizens maintained its Market Outperform rating with a price target of $100, highlighting the potential of PayPal’s new advertising business as a promising revenue stream.

PayPal has unveiled the PayPal Ads Manager, a platform aimed at enabling small businesses to create retail media networks, which is expected to launch in early 2026. Additionally, PayPal announced a 5% cash back offer for U.S. customers on Buy Now, Pay Later purchases, valid through December 31, 2025. The company is also introducing a Pay Monthly option for in-store purchases, though it will not be available in certain states. These initiatives reflect PayPal’s efforts to expand its services and offer more flexibility to its customers.

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