UPDATE: Pacific Crest Securities Downgrades eBay On Multiple Risk Factors

In a report published Monday, Pacific Crest Securities analyst Chad Bartley downgraded the rating on

from Outperform to Sector Perform, and removed the $60.00 price target. In the report, Pacific Crest Securities noted, “In mid-May, Google updated its search algorithm, which affected eBay's search result rankings, and eBay also experienced a security breach. We spoke with larger eBay sellers about how these events impacted sales, and the majority reported seeing an incremental slowdown in growth in late-May and June. ChannelAdvisor data also point to a slowdown. Growth trends were already soft in Q1 and this could add to pressure in Q2 and 2H14. In addition, our Q2 consumer tech survey showed only 50% of eBay users changed their password after the breach, which tells us there could be a lingering effect beyond Q2.” eBay closed on Friday at $51.50.