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

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

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
Sep 2019MaintainsBuy
Sep 2019DowngradesBuyNeutral
Jul 2019MaintainsOverweight

View More Analyst Ratings for EBAY
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Posted-In: Aegis Victor AnthonyAnalyst Color Price Target Reiteration Analyst Ratings Best of Benzinga

 

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