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Mizuho Cuts PayPal to Neutral With $50 Target, Citing X’s Threat

The call spotlights X’s entry into peer payments as a direct challenge to PayPal’s core model.

Overview

  • Mizuho, which lowered its view Thursday, moved PayPal to Neutral and set a $50 price target that sat about 1% above PYPL’s $49.57 quote at the time.
  • Mizuho warned that X’s push into peer-to-peer transfers and digital wallets could pull users from Venmo and reduce use of PayPal’s branded checkout on merchant sites.
  • The firm also trimmed its growth outlook for Venmo and for PayPal’s checkout unit, arguing native shopping and payments inside X could reroute transactions away from PayPal.
  • Recent results have weighed on confidence, with Q4 earnings of $1.23 per share missing a $1.29 estimate and revenue of $8.68 billion falling short of an $8.82 billion forecast.
  • Investor signals stay cautious as consensus sits at Hold with an average $56.61 target, while legal risk builds with an April 20 lead‑plaintiff deadline and insiders selling about 87,600 shares worth roughly $3.8 million in three months.