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SunTrust Raises Price Target On eBay Inc

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SunTrust maintained a Neutral rating, but raised its price target on eBay Inc (NASDAQ: EBAY) from $58 to $60.

The change came after news that eBay will separate its Marketplace and Payments business. Analysts led by Robert Peck thought this action will be a positive for the shareholders.

According to Peck, the decision to separate eBay and PayPal will allow the businesses, "1) to be more nimble, 2) pursue revenue synergies, 3) have a currency for hiring and M&A, 4) create better alignment with goals of different investors, and 5) potentially unlock asset value via the spinoff."

Peck suggested that questions remain regarding the management’s thinking, as well as both synergies and dis-synergies that will come from the spinoff.

Their spin-off analysis showed that “asset spins are positive for shareholders” on average, with the parent outperforming the market by 21 percent and the spin outperforming by 27 percent.

eBay Inc closed at $56.63 on Tuesday.

Latest Ratings for EBAY

Mar 2018Raymond JamesUpgradesMarket PerformStrong Buy
Feb 2018BMO CapitalMaintainsOutperformOutperform
Feb 2018Bank of AmericaMaintainsBuyBuy

View More Analyst Ratings for EBAY
View the Latest Analyst Ratings

Posted-In: Robert S. Peck SunTrustAnalyst Color Price Target Analyst Ratings


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