Analyst Lee Horowitz from Deutsche Bank reiterated a Buy rating on eBay (EBAY – Research Report) and decreased the price target to $56.00 from $58.00.
Lee Horowitz has given his Buy rating due to a combination of factors that indicate eBay’s strong performance and potential for future growth. The company surpassed market expectations in its first-quarter results, showing resilience and momentum in remaking its platform despite broader economic challenges. eBay’s focus on expanding its pre-owned segment, which now represents 40% of its volume, is expected to resonate well with enthusiasts and is poised for further improvements. The anticipation of improved growth in the second half of 2024 underlines a credible trajectory towards mid-single-digit volume growth.
Additionally, Horowitz’s confidence is bolstered by eBay’s solid gross merchandise volume (GMV) growth outlook, which remains stable when adjusted for foreign exchange factors. The platform’s continued improvement in both focus and non-focus categories, alongside innovative product offerings, contributes to the belief that eBay can achieve a compound annual growth rate (CAGR) of approximately 9% in earnings between 2023 and 2026. Despite a slight reduction in the target price to $56, the current market valuation of eBay’s shares is deemed undervalued, especially when considering its core earnings per share (EPS) multiples relative to the market. This underpins the analyst’s reiteration of a Buy rating for eBay’s stock.
According to TipRanks, Horowitz is a 5-star analyst with an average return of 31.4% and a 67.19% success rate. Horowitz covers the Consumer Cyclical sector, focusing on stocks such as eBay, Airbnb, and Wayfair.
In another report released on May 2, Barclays also maintained a Buy rating on the stock with a $65.00 price target.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
eBay (EBAY) Company Description:
eBay Inc.is one of the world’s largest online marketplaces, connecting buyers and sellers worldwide. Its marketplace platform allows visitors to browse through and buy products listed for sale or auction. The company has business operations across 190 countries.
Read More on EBAY:
