- Mizuho and Loop Capital cut their price targets on PYPL after Stripe and Advent International reportedly ended takeover talks.
- Mizuho cited risks including commoditization of Paypal‘s branded checkout, potential market share loss in Germany, and competition from X-Money.
- Keefe Bruyette maintained an ‘Outperform’ rating, calling PayPal an attractive acquisition target due to its low valuation.
Shares of PayPal Holdings (PYPL) plunged 13% on Friday after Bloomberg reported that a consortium consisting of Stripe and Advent International abandoned its pursuit to acquire the payments firm, a deal that would have valued the company at over $53 billion. Consequently, the stock briefly fell below its 50-day moving average for the first time in over a month and is on track for its biggest single-day slump in six months.
Mizuho lowered its price target on PYPL to $51 from $60, maintaining a ‘Neutral’ rating, and highlighted three key risks. The firm noted that PayPal’s branded checkout business is becoming commoditized, making the button less distinctive, and that the company faces increasing risk of losing market share in Germany, where it held a 28.7% share in 2025 according to the EHI Retail Institute. Meanwhile, Venmo could face disruption from Elon Musk‘s X Money service, which launched last month as an X-based fund transfer service.
Loop Capital also cut its target to $50 from $62 and retained a ‘Hold’ rating. However, Keefe Bruyette remained more optimistic, maintaining an ‘Outperform’ rating and a $70 target, with analyst Sanjay Sakhrani suggesting PayPal may have rejected the offer because Stripe and Advent sought to buy the company cheaply. The firm still considers PayPal an attractive acquisition target due to its low valuation and “low-double-digit unlevered free cash flow yield.”
Despite the stock drop, retail sentiment on Stocktwits turned ‘bullish’ from ‘bearish’ over the past 24 hours, with message volumes surging 839%. One user called PYPL an “incredible buying opportunity,” while another argued the stock is expensive at $51. PYPL has shed roughly 9% of its value so far this year.
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