UPDATE: Shares Of eBay Respond To SunTrust Downgrade

In a report published Wednesday, SunTrust analyst Robert Peck downgraded

from Buy to Neutral and lowered the price target from $62.00 to $58.00. Peck remarked that the December upgrade to Buy reflected his belief that investor expectations were “washed out,” reduced guidance was already taken into account, and the value of the business as expressed by an activist shareholder. The analyst commented, “However, we point to 3 near term items that suppress our near term enthusiasm: 1) with the activist no longer highlighting the value, we no longer see that as a catalyst to drive the stock higher, 2) a $3b charge in the earnings release lowers the cash in our sum of parts valuation (and could imply a potential large acquisition in the future), 3) general multiples in the industry have been reduced, making near term operating outperformance the main driver of stock appreciation.” SunTrust maintained estimates for eBay. Peck sees 2014 and 2015 revenue of $18.2 billion and $21.1 billion, respectively. SunTrust's EPS estimates for 2014 and 2014 are $2.98 and $3.44, respectively. Peck added that he remains “cautiously optimistic” on eBay in the long-term. Shares of eBay closed at $50.95 on Tuesday. The stock is currently trading at $50.00, down 1.9 percent.