Market Overview

Aegis Lowers eBay Revenue Estimate On European Economic Softness, Strong Dollar

Share:
Aegis Lowers eBay Revenue Estimate On European Economic Softness, Strong Dollar
Related EBAY
Q4 13F Roundup: How Buffett, Einhorn, Ackman And Others Adjusted Their Portfolios
Guggenheim Downgrades PayPal On Likely Headwinds From Brexit, Payments Competition

A soft European economy and strong U.S. dollar led Aegis Capital Wednesday to lower its full-year 2019 revenue estimates for eBay Inc. (NASDAQ: EBAY).

The Analyst

Aegis analyst Victor Anthony maintained a Buy rating on eBay and lowered the price target to $40 from $44.

The Thesis

The auction site is likely to suffer from expected lower overall merchandise sales volume because of economic softness in Europe and a strong U.S. dollar, Anthony said in a Wednesday note.

The strengthening of the dollar has a negative impact on exports, and eBay has a good-sized cross-border business, the analyst said. 

The risk factors cited by Anthony include: 

  • More competition from other e-commerce companies, particularly Amazon.com, Inc. (NASDAQ: AMZN)
  • The uncertain prospects surrounding the potential for additional future government regulations.
  • The possibility of higher postal rates.
  • Overall macro issues affecting the broader stock market, including trade wars, interest rates and energy prices.

Price Action

Shares of eBay were 2.78 percent higher at $28.85 at the close Wednesday. 

Related Links:

Morgan Stanley Downgrades eBay On Slower GMV Growth

What To Do With eBay Now? Analysts Debate

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: Aegis Victor AnthonyAnalyst Color Price Target Reiteration Analyst Ratings Best of Benzinga

 

Related Articles (AMZN + EBAY)

View Comments and Join the Discussion!

Apple Makes Drastic Cut To Q1 Sales Guidance, With iPhone Performance To Blame

Morgan Stanley: Moderna Has Significant Competitive Advantage