Truist Cuts Paypal Target to $44 on Cross-Border Weakness

Truist cut paypal's price target to $44 from $45 on Tuesday and kept a Sell rating. The firm said cross-border volume softness, plus structural pressure in payments, is still weighing on the stock. Paypal traded near $45 after falling 23% year to date.

Cross-Border Volumes Squeeze

Truist tied the change to weakening international Total Payment Volume and ramping loyalty and rewards spending. Geopolitical tensions, tariff-related trade disruption, and EMEA payment weakness are pressuring cross-border volumes across the payments sector, not just one company.

Truist framed the move in a broader Payments research note following Q1 2026 results. That leaves Paypal facing the same mix of slower top-line assumptions and heavier customer incentive spending while it works through its strategic transformation.

Other Analysts Move Lower

Last week, Macquarie downgraded Paypal from Outperform to Neutral. On Tuesday, Autonomous Research trimmed its target to $40 from $41. The stock now sits below the average Wall Street price target of $52.70 and well under its forward P/E ratio of 9x.

30 of 44 analysts now rate Paypal at Hold, a sign that the debate has narrowed around execution rather than scale. The company still has 439 million active accounts, FY25 revenue of $33.17 billion, FY25 non-GAAP EPS of $5.31, a $0.14 quarterly dividend, and $6 billion in repurchases over the trailing 12 months.

Enrique Lores Takes Over

Enrique Lores is set to take over as incoming PayPal CEO while the company continues to push loyalty and rewards and defend branded checkout performance. Truist’s cut shows the market is focusing less on account count and more on whether cross-border weakness and spending on retention can keep pressuring margins and estimates.