PayPal upgraded to neutral at MCH & Co., reversing downgrade from earlier this month
PayPal Holdings Inc. was upgraded to neutral from sell at Monness, Crespi, Hardt & Co., reversing the firm's downgrade from earlier this month. Analyst James Cakmak said in a note that shares appropriately reflect the risks which led him to downgrade the stock, including competitive risks from the likes of Apple Inc.'s and Alphabet Inc.'s payment systems, start-ups winning over developers and retailers bypassing PayPal's payment system. Cakmak pointed to Wal-Mart Stores Inc.'s move to launch its own payment system in December. PayPal shares are down about 13% since MCH & Co.'s initial downgrade on Jan. 4, underperforming the NASDAQ's 8% slide. Cakmak said he didn't expect the correction to happen so quickly, but believes now the stock is adequately priced.
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