PayPal (PYPL) Stock: Bank of America Lifts Price Target to $55 Following NFL Deal

TLDR

• PayPal has secured a partnership to become the official peer-to-peer (P2P) payments provider for the NFL, facilitating fan transactions on a global scale.
• Following an initial decline of over 1.5%, shares of PYPL rebounded to trade above $51.
• Bank of America increased its price target for PayPal to $55, suggesting an upside potential of approximately 8%.
• BMO Capital began coverage with a “Market Perform” rating and a price target of $52.
• Cantor Fitzgerald boosted its target to $54, while Mizuho issued a downgrade and lowered its target to $50.

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(SeaPRwire) –   PayPal has entered into a partnership with the NFL, establishing itself as the league’s official P2P payments partner. This collaboration positions PayPal at the heart of fan-related financial activities, including ticket purchases, group payments, and expenses incurred on game days.

However your group chat does football, we’re ready to support your money moves this season. PayPal is proud to be the Official Peer-to-Peer Payments Partner of the @nfl. pic.twitter.com/CQ14QR5oJs

— PayPal (@PayPal) April 21, 2026

The company’s 430 million users, which includes a U.S. base of over 100 million Venmo customers, will gain the ability to transfer, divide, and pool funds directly via the application. Given the NFL’s presence in 110 countries, this deal also serves as a cross-border initiative.

Although PYPL stock dipped more than 1.5% upon the news, analysts indicated that this movement reflected existing downward pressure on the stock rather than a negative response to the partnership. The stock subsequently recovered, moving past the $51 mark.

PayPal Holdings, Inc., PYPL

The updated PayPal application is slated to introduce faster payment functionalities, such as searching by phone number and utilizing PayPal links. These tools enable users to transfer funds through messaging apps, email, and text.

The process for group payments is also being streamlined, offering more efficient ways to split and finalize costs. Security measures include end-to-end transaction encryption and immediate availability of funds received.

Furthermore, PayPal intends to distribute up to $1 million in rewards during major NFL events, alongside fan incentives such as sweepstakes, ticket access, and exclusive experiences.

Analyst Targets Move After NFL Announcement

Following the partnership announcement, Bank of America lifted its price target for PYPL to $55, indicating an approximate 8% upside from current pricing. Despite this adjustment, the bank maintained its “Hold” rating.

BMO Capital initiated coverage of PYPL during the same week with a “Market Perform” rating and a $52 target. While acknowledging PayPal’s scale as a significant advantage, the firm highlighted persistent competition from entities like Stripe, Shopify, and Apple Pay.

BMO also pointed out that PayPal is currently operating under its third leadership team in three years, citing concerns regarding strategy and execution as potential hurdles to the company’s recovery.

With a P/E ratio of 9.45 and a PEG ratio of 0.25, BMO considers the stock to be fairly valued. PYPL has experienced a decline of roughly 27% over the last six months.

Cantor Fitzgerald also increased its target to $54 while keeping a “Neutral” rating, noting that a stable consumer environment could provide support for future performance.

Mizuho Cuts Target as Competition Weighs

Not all analysts share an optimistic outlook. Mizuho downgraded PYPL from “Outperform” to “Neutral” and reduced its price target to $50, citing intensifying competition and tempered growth expectations for both the PayPal branded checkout and Venmo.

Loop Capital initiated coverage with a “Hold” rating and a $46 target, representing the most conservative stance. The firm expressed concerns regarding market share and the ongoing transition under new leadership.

Regarding product developments, PayPal recently integrated its “Payment Links” feature into Canva, allowing users to process payments directly within their designs. These transactions can be completed using Venmo, PayPal, or PayPal Pay Later without requiring a separate website.

Additionally, Michael Burry recently disclosed a position in PayPal, implying that the broader downturn in software stocks was driven by technical factors rather than fundamental weaknesses.

BMO’s $52 target suggests that the firm views PYPL as fairly valued at current levels, noting that low expectations and planned share repurchases serve as supporting factors for this assessment.