Mizuho downgraded PayPal Holdings Inc. to Neutral from Outperform. The firm lowered its price target for the stock to $50 from $60.
Analysts identified X, formerly Twitter, as a direct substitution risk to Venmo and PayPal’s branded checkout business. X is currently expanding into peer-to-peer payments and social commerce.
PayPal shares have underperformed year-to-date. The company previously acknowledged poor execution within its branded checkout segment. This downgrade adds pressure as the company navigates a CEO transition and a pending securities class action lawsuit.