Shares of PayPal (PYPL – Get Report) were slipping Monday after analysts at Guggenheim downgraded the stock to sell from neutral, citing regulatory and other headwinds expected to take hold before 2020.
The stock was down 3.02% to $112 a share in morning trading. Analyst Jeff Cantwell gave a price target of $104 a share in Guggenheim’s note.
“We see management’s lowered 2019 guidance as unwelcome ahead of what we expect will be a challenging 2020 for PYPL — headwinds include the eBay separation, Brexit, and regulatory changes in Europe (PSD2/SCA),” Cantwell wrote in a note. Management is guiding for 2019 sales to be in the range of $17.6 billion to $17.8 billion, while analysts are looking for $17.76 billion. This last figure would represent 15% year-over-year growth.
