Credit Suisse Raises EBAY Target To $34 From $32; Adjusts Estimates

eBay Inc.

reported solid 4Q10 results that “exceeded our estimates,” Credit Suisse reports. “Revenue totaled $2.5b, up 5% y/y (+12% organic growth), 0.5% higher than our forecast,” Credit Suisse writes. “Non-GAAP EBIT of $749m (up 8% y/y) was 1.2% above our projection, driven by upside at PayPal and stable performance in Marketplaces. Non-GAAP EPS (x-1x items) of $0.50 of vs. $0.44 beat our $0.47 est. and guidance of $0.45-$0.48.” Credit Suisse said that it is fine-tuning its FY11 EPS estimate to $1.97 from $2.00 to reflect some dilution from 3 recent acquisitions, “although we remain above consensus and guidance of $1.90- $1.95.” Credit Suisse has lowered its 2012 EPS estimate to $2.25 from $2.29. “We are rolling over our target price to year end 2011 and thus our DCF-derived price target rises from $32 to $34, which implies that eBay can trade at 17x our 2011 EPS estimate,” Credit Suisse concludes. eBay Inc. currently trades at $30.28.