UPDATE: Bank of America Reiterates Buy Rating, Lowers PT on eBay on Weak Results, Low Expectations

In a report published Thursday, Bank of America analyst Justin Post reiterated a Buy rating on eBay EBAY, but lowered the price target from $62.00 to $60.00. In the report, Bank of America noted, “Revenue at $4.35bn was below Street at $4.36bn with lower margins offset by lower taxes, resulting in EPS of $0.68 vs. vs the Street at $0.67. Organic rev. growth of 10% y/y was stable q/q but the 2Q security breach and Google algorithm change continued to have an impact on the Marketplace in 3Q (plus impact of Stubhub lingers). PayPal was strong with TPV and revenue exceeding our estimates (due to the Braintree acquisition), a positive as PayPal is a higher multiple business (although margins are under pressure). Revenue guidance for 4Q was below the Street, but if there was a surprise it was low margins. Stable EPS ests. was the bright spot.” eBay closed on Wednesday at $50.24.