• Deutsche Bank analyst Nate Svensson sets a price target of $65 for PayPal (NASDAQ:PYPL), indicating a potential upside of about 3.83%.
• JPMorgan downgrades PayPal and Fiserv to a Neutral rating, citing the most challenging year for payment stocks in 15 years, excluding the COVID-19 crash.
• Despite market challenges, JPMorgan labels 2026 as a "prove-it year" for PayPal, with newer ventures like lending adding to the sector's uncertainty.

On December 5, 2025, Nate Svensson from Deutsche Bank set a price target of $65 for PayPal (NASDAQ:PYPL). At that time, the stock was trading at $62.60, indicating a potential upside of about 3.83%. PayPal, a leading player in the digital payments industry, competes with companies like Fiserv and Toast.

JPMorgan has advised investors to reconsider their positions in the payments sector for 2026, downgrading both Fiserv and PayPal to a Neutral rating. The bank highlights that payments stocks are facing their most challenging year in 15 years, excluding the COVID-19 crash. This is due to slowed growth and intense competition, as highlighted by JPMorgan.

Despite a current price of $62.54, reflecting a 1.31% increase, PayPal's stock has fluctuated between $61.50 and $62.63 during the trading day. Over the past year, PYPL has seen a high of $93.66 and a low of $55.85. The company's market capitalization is approximately $58.52 billion, with a trading volume of 1,626,905 shares.

JPMorgan has labeled 2026 as a "prove-it year" for companies like PayPal, indicating potential for positive outcomes but also significant risk of disappointment. Newer ventures such as lending have yet to demonstrate profitability, adding to the uncertainty in the payments sector.

In contrast, JPMorgan is optimistic about Toast, despite its shares being down 6% year-to-date. The bank notes that earnings estimates for Toast have increased by 27%, presenting an opportunity. Toast's growth and profitability are aligning well, making it a more attractive option amidst current market uncertainties.