PayPal downgraded to Market Perform from Outperform at Bernstein

Bernstein analyst Harshita Rawat downgraded PayPal to Market Perform from Outperform. The firm does have upside to its target price given the stock price performance recently. The stock path appears to be more uncertain from these levels due to the “push/pull dynamics around intense competitive pressures on the cash-cow button on one hand, and tailwinds from buybacks/opex cuts and incrementalism on the other hand.” the analyst tells investors in a research note. Bernstein cites the “wider-than-usual range of long-term outcomes” for PayPal for the downgrade. It wants more visibility into the long-term trajectory of the button and ability of the company’s new initiatives to cumulatively move the needle for gross profit growth.