JPM downgrades Fiserv, PayPal ratings to 'neutral'

J.P. Morgan downgrades payments firm Fiserv FISV.O and fintech giant PayPal PYPL.O to "neutral" from "overweight"

PYPL shares fall 1% in premarket trading, FISV down 0.33%

JPM also nearly halves FISV PT to $85 from $155, PYPL PT to $70 from $85

Brokerage says confidence in FISV will take time to recover after multiple quarters of disappointing results

JPM sees FISV breaking its four-decade streak of double-digit annual EPS growth in 2026 as its new CEO prioritizes service and technology investments over short-term growth

PYPL is investing early in growth initiatives such as agentic commerce and BNPL, but the investments create a less linear path to achieving 2027 growth targets and come with execution risks, JPM says

Increased competition from alternative payment options and potential changes in transaction take rates or payment network rules could pressure PayPal's unit economics, brokerage says
As of last close, FISV down 67.4% and PYPL down 28.3% YTD