Truist Securities reduced its price target on PayPal Holdings Inc. to $53 from $62, citing rising uncertainty over a potential acquisition after reports that Advent International and Stripe have paused takeover discussions.
The bank maintained a Hold rating on PayPal shares, noting that without a clear strategic rationale from Stripe, any potential bid is likely to face downward pressure. Truist also incorporated a 30% probability of an acquisition at $62 per share into its valuation model.
PayPal’s stock, which closed at $52.23 on Friday, has fallen 13% over the past week, reflecting broader investor unease. The company reported adjusted earnings per share of $1.38 for the second quarter of 2026, while total revenue reached $8.68 billion, up 5% year-over-year and 2% above consensus estimates. Adjusted EPS declined 1% from the same period a year earlier, though it exceeded expectations by 8%.
Other analysts have taken divergent views. Freedom Broker raised its target to $72 from $60, maintaining a Buy rating, while Mizuho cut its target to $51 from $60, citing fundamental concerns including risks to PayPal’s branded checkout business. Morgan Stanley lifted its target to $45 from $34, citing a higher price-to-earnings multiple based on elevated 2027 earnings estimates.
InvestingPro’s fair value estimate for PayPal stands at $93.24, significantly above current market levels. The divergence in analyst targets underscores the heightened uncertainty surrounding PayPal’s strategic direction amid shifting takeover speculation.
