J.P. Morgan Lowers Price Target on eBay (EBAY)

J.P. Morgan is out with an analyst note this morning, where it reiterates its Neutral rating on eBay Inc. EBAY; it lowered its price target from $24.50 to $24.00. The JPM analysts said, “Transactional revenue rose 22%, (from 27% in 1Q) as Merchant Services TPV increased 45% ex-FX, only a slight slowdown from 1Q’s 47% FX-neutral growth. We continue to expect robust growth from PayPal (especially off-eBay) going forward, with our F’10 transactional revenue est. dropping slightly to $3.24B from $3.30B due to FX.” They added, “Excluding the impact of FX and Gmarket, Int’l non-vehicles GMV was up 9%, in line with the 9%-11% range of the last three quarters. Our model now calls for 13% F’10 non-vehicles GMV growth, down from 21%, with an FX headwind contributing to the lower estimate.” The JPM analysts further noted, “We remain bullish on PayPal’s prospects to execute and grow within online payments, but still view the Marketplaces turnaround with caution. Because we see the Payments upside as mostly priced in, we reiterate Neutral. Flowing through our slightly reduced estimates, our new end-2010 price target is $24, down from $24.50.”