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SunTrust Robinson Humphrey Reiterates on eBay Following Enterprise CEO's Departure

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In a report published Thursday, SunTrust Robinson Humphrey analyst Robert Peck reiterated a Buy rating and $61.00 price target on eBay (NASDAQ: EBAY) following the departure of Enterprise CEO Chris Saradakis.

According to the report, While it is never good to see disruption in leadership of important units, the analysts believe this may work out well for EBAY as the Enterprise unit had underperformed recently.

“Enterprise is small for eBay, only comprising ~6% of revenues and ~1% of operating profit,” the report noted. “Importantly, the unit had been underperforming for the last few quarters with top line growth rates of 0-5% and segment margins of 5% vs. overall eBay operating margins of ~27%. The unit has been pressured by larger clients pushing back on pricing, which hampered top line growth.”

EBAY closed at $57.39 on Wednesday.

Latest Ratings for EBAY

DateFirmActionFromTo
Sep 2015Piper JaffrayUpgradesUnderperformNeutral
Aug 2015Evercore ISIInitiates Coverage onHold
Jul 2015Morgan StanleyInitiates Coverage onEqual-weight

View More Analyst Ratings for EBAY
View the Latest Analyst Ratings

Posted-In: Robert Peck SunTrust Robinson HumphreyAnalyst Color Reiteration Analyst Ratings

 

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