Investors Shrug at Pacific Crest Concerns as News of 'The Plaza' Dominates eBay Tape
Macquarie analyst Ben Schachter is optimistic on eBay Inc. (NASDAQ: EBAY) reporting that the company will introduce a new marketplace called "The Plaza" in the spring.
"The Plaza" will focus on direct-to-consumer sales, similar to Alibaba's Tmall. The analyst noted that "The Plaza" will allow brands to sell directly to consumers but in a more "controlled area" than the traditional eBay marketplace. Schachter wrote that strategically, "this makes a lot of sense and would enable eBay to bring its enterprise business front and center."
Pacific Crest analyst Chad Bartley was not as confident in his note. Although still bullish on the stock, Bartley lowered the price target from $62.00 to $60.00 and cut fourth quarter and 2014 estimates. The analyst noted that eBay's U.S. trends were soft in the fourth quarter and investors have likely expected these weaker results and forecasts.
Bartley maintained an Outperform rating on eBay and recommends to Buy when Shares are closer to $50.00.
Shares of eBay closed at $53.79 on Wednesday.
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