Shares of PayPal Holdings (NASDAQ: PYPL) rose 1.47% to $50.48 on April 24, buoyed by an upward revision in Truist's price target to $45 from $39, though the brokerage maintained its Sell rating on the stock. The price target remains below the current market price, highlighting ongoing caution among analysts.
The move comes just ahead of PayPal's first-quarter earnings call scheduled for May 5, which will be the first quarterly report since Enrique Lores took over as president and CEO in February 2026. Lores has emphasized a need for quicker execution and sharper focus on core business areas.
Truist analyst Matthew Coad cited a "mostly positive" payments landscape, pointing to stronger U.S. bank earnings and more active consumer spending. However, he advised investors to "choose wisely," suggesting that while the macro environment may be improving, PayPal's specific challenges remain unresolved.
Investors are closely watching for signs of growth in PayPal's branded checkout business, which generates higher margins compared to its unbranded payment processing services. The company has been under pressure from competitors such as Apple and Google in the digital payments space, and any slowdown in branded checkout growth could weigh on profitability.
PayPal's stock tumbled 19% in February after the company announced the CEO change and provided a lackluster profit outlook for 2026. The holiday quarter saw revenue and adjusted profit fall short of expectations, with branded checkout growth slowing to just 1%, down from 6% a year earlier.
In an effort to bolster its narrative, PayPal recently highlighted its peer-to-peer (P2P) payments segment, reporting a 7% increase in combined PayPal and Venmo P2P volume for 2025. The company also secured a partnership with the National Football League (NFL) as its official peer-to-peer payments partner, positioning itself for large-scale fan transactions.
Despite these positive developments, the company's annual filing warned of fierce competition from larger or more agile rivals, and flagged risks related to product differentiation and adoption. The upcoming earnings report will be a critical test for Lores, who must demonstrate that PayPal can reignite growth in its core branded checkout business and fend off competitive threats.
The April 24 rally suggests some investor optimism, but the Sell rating from Truist underscores the work ahead. With the stock trading above the revised price target, the market appears to be pricing in a more favorable outcome than the analyst currently expects. All eyes will be on May 5 to see if the new CEO can deliver a clearer growth narrative and restore confidence in the payments heavyweight.
