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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 2.77% to $112.29 on Monday. 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. 

Cantwell is looking for 2020 earnings per share of $3.45, lower than the consensus estimate of $3.53.

Speaking of those headwinds, Cantwell wrote that "PYPL has highlighted the U.K's departure from the EU as being a potential risk factor for the company but our point is that U.K. growth is slowing due to Brexit-related uncertainty, and we expect a continuation of this dynamic next year that will have an impact on volume growth (and, by extension, revenue growth) for PYPL," Cantwell said. "New partnerships are unlikely to be enough to fully offset these significant headwinds in 2020." 

Roughly 11% of PayPal's revenue comes from the U.K.

PayPal shares are up 33% year-to-date.

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