PayPal falls: Bernstein cuts his recommendation 'concerned' by competition

He has raised the target price to $80

The shares of the payment platform PayPal have fallen this Thursday on Wall Street by 3.27% after Bernstein expressed "concern about competitive pressures" and cut his recommendation to 'neutral' from 'overweight', according to 'CNBC'. However, the firm's analysts have also decided to raise their target price to $80, from the previous $75, because the company's shares had already surpassed this level.

"We tactically improved the asset at the end of July due to improved product speed and execution under the new management," the firm said, although it now has doubts due to the "tug-of-war" dynamic that PayPal has maintained during the last few months. Specifically, Bernstein fears the effects that competition in its main "source of income" can generate on its market share, although it also identifies strengths in the form of possible share buyback programs and expense reduction plans.

In addition, it points out that other initiatives promoted by the company, such as 'PayPal Everywhere', have not yet proven their worth for the future of the company.#PayPal #paypalpyusd #PYUSD #EE.UU. #wallstreet