PayPal downgraded to Neutral at BofA ahead of transition year

As previously reported, BofA downgraded PayPal to Neutral from Buy with a price target of $66, down from $77. Following a modest Q3 beat and new CEO Alex Chriss’ fresh messaging around profitable growth and increased urgency around execution, shares have traded up from their lows, but the firm sees 2024 as a transition year, the analyst tells investors. PayPal still has a strong brand, balance sheet, and scale, but BofA expects shares to be range-bound in the near-term as a new CEO and CFO seek to earn Street credibility while driving sustained improvements in top-line metrics, the analyst added.