---
title: "PayPal Retains Hold Rating as Analyst Cites Improved FY26 Targets but Waits for Stronger Branded Checkout Momentum and Cost-Saving Execution"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/294097970.md"
description: "Needham analyst Mayank Tandon maintains a Hold rating on PayPal (PYPL). While FY26 targets and Q2 results improved, the analyst cites weak branded checkout momentum and pending cost-saving execution as reasons for caution. Despite a low valuation, Tandon awaits clearer progress on $1.5B savings and checkout growth before upgrading."
datetime: "2026-07-28T17:05:25.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/294097970.md)
  - [en](https://longbridge.com/en/news/294097970.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/294097970.md)
---

# PayPal Retains Hold Rating as Analyst Cites Improved FY26 Targets but Waits for Stronger Branded Checkout Momentum and Cost-Saving Execution

Needham analyst Mayank Tandon has maintained their neutral stance on PYPL stock, giving a Hold rating today.

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Mayank Tandon has given his Hold rating due to a combination of factors, including PayPal’s better‑than‑expected second‑quarter results and an upward revision to its FY26 total payment volume and non‑GAAP EPS targets. Management also slightly improved its outlook for online branded checkout, while underscoring that the board remains open to strategic alternatives that could enhance shareholder value relative to the current transformation plan.

At the same time, branded checkout volumes are growing only modestly, in contrast to stronger mid‑teens growth in Venmo and PSP, highlighting an area where momentum still needs to improve. Despite the stock’s relatively low ex‑cash FY27 P/E valuation, Tandon prefers to see clearer, sustained progress on the $1.5 billion cost‑saving initiative and a more convincing re‑acceleration in branded checkout before adopting a more constructive stance, leading him to retain a Hold recommendation.

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