PayPal upgraded to Buy on strong Q1 growth and cost-saving plans under new CEO

Analyst Danil Sereda upgraded PayPal Holdings (PYPL) back to a Buy rating, citing excessive market pessimism and undervaluation. Despite pressure on margins and take rates, PayPal's Q1 results showed strong revenue and total payment volume growth. New CEO Enrique Lores is implementing a restructuring plan aiming for $1.5 billion in annual savings through AI-driven efficiencies. Potential positive developments in Fastlane, AI, Venmo monetization, or crypto could further boost PayPal's valuation.