2024-01-05 07:36:49 ET
PayPal ( NASDAQ: PYPL ) shares dipped premarket on Friday after being hit by second analyst downgrade in two days.
BTIG lowered its recommendation on the stock from Buy to Neutral, suggesting that the payments company is facing "too much uncertainty."
Analyst Andrew Harte says, "We see the process of returning the company to consistent and profitable revenue growth as a multiyear initiative, rather than a FY24 story."
He expects the two priorities for new CEO Alex Chriss will be driving margin expansion for Braintree and stabilizing/revitalizing traditional branded checkout, both of which are likely to be multiyear catalysts.
In the third quarter earnings call, the management mentioned that it was refreshing its strategic priorities and focus areas for 2024. An update on that and path to achieve durable profitable growth is expected in the upcoming earnings call in February.
On Thursday, Oppenheimer downgraded the mobile payments company to Market Perform from Outperform, citing profitability concerns and a change in its product portfolio.
Seeking Alpha's Quant system rates PayPal ( PYPL ) as Hold with a score of 3.28 out of 5. Wall Street Analysts differ with a Buy recommendation
Shares of PayPal ( PYPL ) are down 23.36% over the past year and 4.59% YTD
More on PayPal
- PayPal: Too Many Issues To Reckon With
- PayPal: Don't Keep Hanging On To A Poor Call
- PayPal: Compelling Bull Case, Crumbling Bear Case
- PayPal downgraded at Oppenheimer on profitability concerns
- Amazon to stop accepting Venmo as a payment option from January 10, 2024
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PayPal hit with second downgrade in two days