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SunTrust Lowers Price Target For eBay

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SunTrust commented on eBay Inc (NASDAQ: EBAY) Thursday after it beat 3Q expectations but offered a disappointing outlook.

Analyst Robert S. Peck maintained a Neutral rating and reduced the price target from $60 to $57 "reflecting multiple compression in the market and our reduced estimates."

Peck valued "eBay using our central tendency of value methodology applying sum-of-parts, 15x 2016E EPS, and 9x 2016E EV/EBITDA, which are in-line with eBay’s peer groups of leading payments, retailers and ecommerce companies."

Positives for Peck included 1) payments growing "at a robust pace with TPV +28 percent y/y ex Fx, and Merchant Services +37% [and accelerating], 2) Cross border trade grew 27 percent to $14B, 3) Mobile payment volumes were +72 percent while mobile marketplace was +41 percent, 4) Both PayPal and Marketplace increased users by >13 percent, and 5) eBay raised its cash position to ~$15B, with a positive ~$1B in FCF and has $2B remaining on its buyback authorization."

eBay Inc traded at $48.62 in the premarket, down 3.22 percent.

Latest Ratings for EBAY

Apr 2017Monness Crespi HardtDowngradesBuyNeutral
Apr 2017ArgusMaintainsBuy
Mar 2017BarclaysInitiates Coverage OnOverweight

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


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