Seaport Global Securities upgraded PayPal (NASDAQ:PYPL) from Sell to Neutral, citing improved clarity around tariff risks and positive steps the company has taken to strengthen its long-term growth outlook. As a result, shares rose more than 3% intra-day today.

The firm’s earlier bearish view was based on concerns that global tariff impacts would weaken consumer spending, making it difficult for PayPal to achieve its 8%–10% Checkout growth targets. However, with trade-related risks now appearing less severe, Seaport no longer expects a material drag on transaction volumes.

In addition to the macro shift, Seaport highlighted operational improvements within PayPal’s ecosystem. The company’s efforts to expand Venmo’s utility and its foray into stablecoins through PYUSD are seen as incremental growth drivers that could help diversify revenue streams over time.

With those factors in mind, Seaport raised its 2025 and 2026 earnings forecasts and now views PayPal’s current valuation—trading at 14x and 13x projected EPS for 2025 and 2026, respectively—as fair.