Market Overview

UPDATE: Nomura Upgrades eBay to Buy on PayPal Momentum

Share:
Related EBAY
Tinder CEO Steps Down For The Second Time
4 Ways To Make Quick Cash With These Tech Companies
Trade Me: The Craigslist of New Zealand (GuruFocus)

Nomura raised its rating on eBay (NASDAQ: EBAY) from Neutral to Buy and increased its price target from $43.50 to $60.

Nomura said, "PayPal has been the largest source of eBay upside this year, as segment margins have expanded by ~400bp. In the following note, we dive into PayPal‟s evolving business and cost structure and conclude that we have been under-appreciating the growing drivers to PayPal's profitability… and this is just the beginning of rising PayPal earnings power. Our slicing of PayPal's costs through a "variable” vs. “fixed/semivariable" lens underscores that the recent de-levering in variable costs (falling by 132bp in 1Q:12 and 198bp in 2Q:12) has been a significant driver of the segment margin improvements. This 2Q:12 contribution margin expansion was the largest since 2009, and in our view, was an omen of what's to come."

eBay closed at $48.59 on Wednesday.

Latest Ratings for EBAY

DateFirmActionFromTo
Oct 2016Hilliard LyonsUpgradesLong-Term BuyBuy
Oct 2016WedbushMaintainsNeutralNeutral
Sep 2016Deutsche BankUpgradesHoldBuy

View More Analyst Ratings for EBAY
View the Latest Analyst Ratings

Posted-In: NomuraAnalyst Color Upgrades Pre-Market Outlook Analyst Ratings

 

Related Articles (EBAY)

View Comments and Join the Discussion!