SAN JOSE, California, April 25, 2026, 12:04 PDT
Shares of PayPal Holdings climbed April 24 after Truist’s Matthew Coad bumped his price target up to $45 from $39, holding firm on his Sell rating. Coad pointed to a “mostly positive” payments landscape, referencing stronger U.S. bank numbers and more active consumer spending. Still, he told investors to “choose wisely.” PayPal finished the day at $50.48, up 1.47%—well ahead of Coad’s revised target. TipRanks
Timing matters here. PayPal’s first-quarter earnings call lands May 5, marking the first quarterly update since Enrique Lores stepped in as president and CEO and kicked off his campaign for quicker execution.
A sell rating packs extra punch here—valuation alone isn’t driving shares anymore. Investors want to see if PayPal can push payment volumes, Venmo, and checkout upgrades hard enough to quiet concerns about the core business.
Heading into 2026, the company hit the reset button. Back in February, PayPal named a new CEO and disclosed that the board’s review determined the “pace of change and execution” was falling short. Lores, stepping in as chief executive, called for sharper, faster execution. PayPal Investor Relations
The reset had already hit the stock hard. PayPal shares tumbled 19% after the CEO switch was paired with a lackluster 2026 profit outlook; Reuters noted the holiday quarter saw both revenue and adjusted profit fall short of expectations, with branded checkout growth slowing to just 1%—down from 6% a year ago. Investors also fretted about Apple and Google threatening PayPal’s main payments turf.
Branded checkout—think the PayPal or Venmo button shoppers spot when paying online—delivers fatter margins compared to simply handling payments behind the scenes for merchants. Investors aren’t satisfied with promises here; they want real evidence.
Friday’s action wasn’t a full vote of confidence. Truist’s new target suggests the payments outlook might not be as bleak as some expected. Still, the Sell rating signals PayPal has work left to do. Lores isn’t getting much leeway from Wall Street yet.
PayPal pushed to highlight its peer-to-peer payments segment this week, reporting a 7% jump in PayPal and Venmo P2P volume for 2025. The company also picked up a new title—official peer-to-peer payments partner of the NFL. “Uniquely positioned” to handle fan transactions on a large scale, according to Ben Volk, PayPal Consumer’s senior vice president and general manager. PayPal Newsroom
That clears up some of the narrative for Venmo and the PayPal app, but leaves the earnings issue unresolved.
Here’s the crux: even if consumer sentiment improves, it might not help PayPal much if branded checkout doesn’t rebound—or if the company ends up shelling out more just to hold its ground at the button. In its annual filing, PayPal highlighted fierce payments competition, noting some competitors are either bigger or more nimble. The company also flagged the risk that lackluster product differentiation or sluggish adoption could drag on performance.
So the April 24 rally finds itself squeezed—yes, a broker hiked the number, but the stock hasn’t caught up. PayPal’s real proving ground lands on May 5, when investors will see if the new chief can finally deliver a clearer growth narrative for the payments heavyweight.
