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SunTrust's Peck 'Cautiously Optimistic' On eBay Following Braintree Purchase, Believes Co. Making Progress On 'Many Efforts'

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SunTrust Robinson Humphrey's Robert Peck early Thursday said he likes eBay's (NASDAQ: EBAY) move to buy Braintree for $800 million.

Peck highlighted several positives:

  • "the robust set of APIs accelerates the technology development for PayPal,
  • PayPal gets more into the Services side of mobile apps with a strong set of prominent emerging companies (Uber, Airbnb, etc), and
  • the Venmo assets add 1-click tokenization that accelerates mobile adoption."

The SunTrust analyst noted the move is inline with comments on recent company calls suggesting it will be re-inventing PayPal. Peck said, "We think this acquisition goes a long way to helping this transformation and is a good use of the company's ~$3b of US cash (non-equity), as it can almost be thought of as “outsourced R&D” for PayPal. We continue to think the company is making progress on its many efforts."

Peck said he remains cautiously optimistic on eBay shares. The analyst maintains a Neutral rating and $59 price target on eBay.

Shares of eBay are

Latest Ratings for EBAY

DateFirmActionFromTo
Nov 2014Evercore ISIDowngradesHoldSell
Oct 2014Morgan StanleyInitiates Coverage onUnderweight
Oct 2014Monness Crespi HardtInitiates Coverage onBuy

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