Macquarie downgraded PayPal (PYPL) to Neutral from Outperform. Analysts cut the price target to $50 from $58. The firm cited a soft outlook for the second quarter of 2026.
Concerns center on a $1.5 billion cost-savings program that is heavily back-end loaded. Most financial benefits from the initiative are not expected until 2026 or 2027.
The action reflects market impatience with the transformation timeline under the new CEO. PayPal recently reported a first-quarter earnings beat. However, a weak profit forecast overshadowed those results. The company is currently executing a restructuring plan to lay off approximately 20% of its workforce.