JMP Securities On eBay: PayPal Spinoff, Recent Security Breach Weigh On Minds Of Analysts Ahead Of Earnings

JMP Securities on Monday issued a company report on

ahead of expected earnings on Wednesday. JMP Securities rates eBay as Market Perform, while a price target is currently unavailable. Analysts Ronald Josey and Ignatius Njoku wrote, "We expect eBay to report 1Q results that are relatively in line with our consensus projections and we believe that headwinds around the security breach, Google's Panda, and FX as well as investments in marketing, technology, and product are likely to keep results relatively in check. "While we believe PayPal is the leader in online payments and that Marketplaces can sustainably grow in line with eCommerce growth rates longer term, we remain on the sidelines until we see a recovery from 2Q14's security breach and we move closer to the PayPal spin." Further updates on the PayPal spinoff are expected with analysts focusing on specific timing and financial guidance regarding the deal. JMP Securities also points to the strengthening dollar as a potential impact for eBay due to the importance of cross-border trade at PayPal. JMP Securities projects eBay Marketplace active users to increase 10 percent year-over-year and PayPal active registered accounts to increase 12 percent year-over-year. However, the analysts note that due to security breaches and other operating challenges, investors may see a decline in the upcoming results.