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PayPal stock gains after Guggenheim ends bearish call

Emily Bary

Guggenheim analyst Jeff Caldwell ended his bearish call on PayPal Holdings Inc. shares on Tuesday, upgrading the stock to neutral from sell. He wrote that PayPal shares have lagged the S&P 500 in recent weeks, dropping 11% since July 26 while the S&P 500 has fallen 5%. Cantwell sees a more balanced risk/reward profile as he considers macroeconomic developments. Ireland's central bank became the latest to say it would delay implementation of Strong Customer Authentication (SCA), a European regulation intended to drive more security in e-commerce payments but that is also expected to add more friction to the process of buying items online. These delays are a positive for PayPal and others, according to Cantwell, but "increasingly negative" Brexit commentary remains a headwind in his view.