Truist Securities upgraded PayPal (PYPL) to 'Hold' from 'Sell' on Friday. The firm also raised its price target to $57 from $44.
This change reflects a less pessimistic view on the stock. External factors, not a fundamental business turnaround, influenced the upgrade.
A potential takeover by Stripe and Advent International drives the upgrade.
Truist analysts believe PayPal's standalone turnaround will be difficult. However, the possibility of a buyout makes a 'Sell' rating difficult to maintain.
The firm considers the Stripe bid "real." Truist acknowledges potential synergies from combining the two payment giants.