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PayPal Holdings: Hold Rating Amid Stagnant Growth and Transaction Challenges

PayPal Holdings: Hold Rating Amid Stagnant Growth and Transaction Challenges

Jefferies analyst Trevor Williams has maintained their neutral stance on PYPL stock, giving a Hold rating on October 10.

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Trevor Williams has given his Hold rating due to a combination of factors impacting PayPal Holdings. The company is experiencing a lack of clear momentum in its branded growth, which remains stagnant at around 5%. This stagnation is compounded by the absence of tangible benefits from targeted initiatives, leaving the company’s growth story in a state of uncertainty.
Additionally, PayPal is facing challenges such as transaction losses from a German outage, which are affecting its transaction margin growth. The outlook for future growth, particularly for fiscal year 2026, is also seen as potentially lower than current market estimates. These elements contribute to a cautious stance, justifying the Hold rating as the company navigates these headwinds without clear visibility into a significant acceleration in growth.

Based on the recent corporate insider activity of 50 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PYPL in relation to earlier this year.

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