PayPal slips after Bernstein downgrades on lack of upside to target

Bernstein analyst Harshita Rawat downgraded PayPal to Market Perform from Outperform with a price target of $80, up from $75. The stock in premarket trading is down 2% to $80.32. The firm notes its price target does not represent upside given the stock price performance recently. While PayPal’s product velocity is improving, Bernstein remains worried about competitive pressures on the “cash-cow core button, which often is still richly priced” versus peers, the analyst tells investors in a research note. The firm also worries about Venmo’s share losses in peer-to-peer.