PayPal recovers after sharp drop; RBC raises price target

PayPal shares rose 3.4% to around $54.20, attempting to recover from a sharp drop of nearly 13% following reports of the collapse of a potential $53 billion acquisition deal by Stripe and Advent.

RBC Capital reaffirmed its buy recommendation and raised its price target to $70 from $65, stating that PayPal's fundamentals remain strong as an independent company.

In contrast, Truist lowered its price target to $53 while maintaining its hold recommendation, while Clear Street reduced its target to $55, reflecting a clear divergence in analyst views.

Investors are also awaiting the earnings split on September 4, 2026, with a quarterly dividend of $0.14 per share. Despite the recovery, the stock is still far from its 52-week high of $79.22, indicating that a significant price discount still exists.