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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

DateFirmActionFromTo
Sep 2017DA DavidsonInitiates Coverage OnBuy
Aug 2017SunTrust Robinson HumphreyInitiates Coverage OnHold
Aug 2017MizuhoReinstatesUnderweight

View More Analyst Ratings for EBAY
View the Latest Analyst Ratings

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

 

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