Published on 12 Jan 2022 on Market Watch
Shares of PayPal Holdings Inc. are off 1.4% in Wednesday morning trading after Jefferies analyst Trevor Williams cut his rating on the stock to hold from buy, warning that the company faces a “muted” setup for the year ahead.
“The poor optics of downgrading ~40% off the highs are not lost on us,” Williams conceded in his note to clients, but he nonetheless made the move because he thinks that PayPal could have trouble expanding its multiple given concerns on Wall Street about the achievability of its multiyear targets.