In a report released today, Justin Post from Bank of America Securities reiterated a Hold rating on eBay (EBAY – Research Report), with a price target of $51.00.
Justin Post has given his Hold rating due to a combination of factors including eBay’s recent financial performance and future outlook. eBay’s fourth-quarter revenue and EPS surpassed Wall Street estimates, with Gross Merchandise Value (GMV) showing a year-over-year increase. Advertising revenue also experienced significant growth, and eBay has continued its practice of returning capital to shareholders through share repurchases and increased dividends. Despite these positive signs, the forecast for 2024 Free Cash Flow was below expectations, which may be a point of concern for investors looking for financial robustness.
Moreover, while eBay’s GMV outlook for the first quarter was slightly above expectations, and non-GAAP operating margin projections were notably higher, attributable to cost-saving measures and accounting changes, the company’s growth does not represent a significant inflection when compared to the broader sector. Post acknowledges that while eBay’s stabilization and margin improvements are appealing, especially to value investors, there are other stocks in the sector that may present more attractive long-term growth potential. The increase in eBay’s price objective to $51 reflects a modest uptick in projected earnings and asset value, yet the Hold rating suggests a cautious approach amidst a competitive ecommerce landscape.
Post covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Meta Platforms, and Pinterest. According to TipRanks, Post has an average return of 23.4% and a 67.79% success rate on recommended stocks.
In another report released today, TD Cowen also maintained a Hold rating on the stock with a $42.00 price target.
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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.
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