eBay’s Buy Rating Reaffirmed at Benchmark Co. (EBAY)
eBay (NASDAQ:EBAY)‘s stock had its “buy” rating reiterated by equities researchers at Benchmark Co. in a research report issued on Wednesday, ARN reports. They currently have a $63.00 target price on the stock. Benchmark Co.’s target price indicates a potential upside of 16.34% from the stock’s previous close.
The analysts wrote, “We note that eBay had warned of slowing ecommerce growth post 3Q results, and that the Company faces its most difficult Marketplaces comparison of the year, with net transaction revenues growing by 16% y/y in 4Q12,” the report noted. “While we admit there could be some modest downside to our 4Q estimate, which may already be reflected in consensus, with shares trading at only 10x our 2014E EV/EBITDA and potential upside to PayPal from offline initiatives and synergies with the recent Braintree acquisition, we still believe eBay has positive longer-term momentum.” Some highlights from the report included: -”We believe that increasing competition, including more simplistic and mobile-centric solutions, has caused investors to second-guess PayPal’s longer-term growth rate, which we think should be sustainable in the low-mid 20% range.” -”eBay trades at 17x 2014E adjusted EPS and 10x 2014E EBITDA, at a slight discount to ecommerce comparables at 19x and 11x, respectively, and above the S&P 500 index at 15x.”
Other equities research analysts have also recently issued reports about the stock. Analysts at Cantor Fitzgerald cut their price target on shares of eBay from $68.00 to $67.00 in a research note to investors on Friday, January 17th. Separately, analysts at SunTrust reiterated a “buy” rating on shares of eBay in a research note to investors on Thursday, January 16th. They now have a $61.00 price target on the stock. Finally, analysts at Pacific Crest cut their price target on shares of eBay from $62.00 to $60.00 in a research note to investors on Thursday, January 16th. They now have an “outperform” rating on the stock. Nine analysts have rated the stock with a hold rating, twenty-seven have issued a buy rating and two have issued a strong buy rating to the company’s stock. The company has a consensus rating of “Buy” and an average price target of $61.80.
eBay (NASDAQ:EBAY) traded down 0.04% during mid-day trading on Wednesday, hitting $54.13. The stock had a trading volume of 7,941,997 shares. eBay has a 1-year low of $48.06 and a 1-year high of $58.04. The stock has a 50-day moving average of $52.95 and a 200-day moving average of $52.9. The company has a market cap of $70.077 billion and a P/E ratio of 25.79. eBay also was the target of unusually large options trading on Tuesday. Investors acquired 39,626 put options on the stock. This is an increase of 207% compared to the typical volume of 12,927 put options.
eBay Inc is a global technology company that enables commerce through three reportable segments: Marketplaces, Payments, and GSI.
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