Market Overview

KeyBanc Adds eBay To Cart On Accelerated GMV

Share:
KeyBanc Adds eBay To Cart On Accelerated GMV
Related EBAY
Benzinga's Top Upgrades, Downgrades For January 4, 2019
Aegis Lowers eBay Revenue Estimate On European Economic Softness, Strong Dollar
Short MercadoLibre - Extreme Valuation With Growth Headwinds (Seeking Alpha)

There’s one discounted eBay Inc (NASDAQ: EBAY) item KeyBanc Capital Markets is keen to get its hands on — its stock.

The Rating

KeyBanc Capital Markets analyst Edward Yruma assumed coverage of eBay with an Overweight rating and $50 price target.

The Thesis

KeyBanc considers eBay a “destination for deals,” with products selling at a 23-percent discount to competitors, Yruma said in a Tuesday note. 

“eBay has successfully transitioned to a destination for compelling prices, and initiatives to enhance customer experience and attract brands should lead to continued GMV acceleration in 2018,” the analyst said. 

Product authentication and brand willingness to push excess inventory through the channel are expected to further improve eBay’s standing, according to KeyBanc. 

At the same time, the recent integration of artificial intelligence, structured data and promoted listings into eBay’s strategy will improve search results, accelerate marketplace revenue and ultimately drive gross merchandise volume from 2.3 percent to 5.8 percent, Yruma said.

KeyBanc forecast GMV acceleration to 10.5 percent in 2018 accompanied by 11-percent revenue growth.

“Additionally, newly rolled out, AI-enabled customer support on desktop and mobile should create additional cost efficiencies over time," Yruma said. 

KeyBanc considers the stock, which trades at a 10-percent premium to the S&P 500, attractive against both discount and marketplace peers.

Price Action

Shares of eBay were up 2.2 percent after the open Wednesday. 

Related Links:

What Can Retail Learn From eBay?

GDPR: The New European Data Rules And Why They Matters For Ad, E-Commerce Players

Latest Ratings for EBAY

DateFirmActionFromTo
Jan 2019Goldman SachsDowngradesBuyNeutral
Dec 2018Wells FargoMaintainsOutperformOutperform
Dec 2018Morgan StanleyDowngradesOverweightEqual-Weight

View More Analyst Ratings for EBAY
View the Latest Analyst Ratings

Posted-In: e-commerce Edward Yruma KeyBanc Capital Markets retailAnalyst Color Price Target Initiation Analyst Ratings Best of Benzinga

 

Related Articles (EBAY)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
MDRXKeyBancUpgrades0.0
ANETNomuraUpgrades260.0
CNPRBC CapitalUpgrades34.0
FISVOppenheimerUpgrades88.0
FOLDCitigroupUpgrades0.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Volatility Up Again After U.S. Missile Threat Vs. Syria Spooks Market

Ethereum Price Analysis: ETH/USD Pulling Up From The $363 Overstretch Low, Buyers Eyeing $420