UPDATE: JMP Securities Downgrades eBay Inc

eBay Inc EBAY was downgraded by JMP Securities on Wednesday from Market Outperform to Market Perform.

Analysts led by Ronald V. Josey felt the company is fairly valued at $58. The recent announcement of the PayPal spin-off is welcome news and many analysts agree that a spin-off is in eBay’s best interests.

Josey and his team expressed concern that the stock will be range bound until the spin-off is completed in the second half of 2015 and the path forward becomes more clear.

Josey stated, “we continue to believe that eBay’s PayPal will remain the leader in online payments, and that Marketplaces can sustainably grow in line with eCommerce growth rates longer-term, but we are stepping to the sidelines on the shares of eBay given valuation, and until we believe operations within Marketplaces are improving.”

eBay Inc traded at $55.74 early Wednesday.