Market Overview

Seller-Focused Initiatives, Delivery Service Give KeyBanc Higher Confidence In eBay's Earnings

Share:
Seller-Focused Initiatives, Delivery Service Give KeyBanc Higher Confidence In eBay's Earnings

eBay Inc (NASDAQ: EBAY) held the eBay Open Annual Seller Event July 23-25. 

CEO Devin Wenig seemed upbeat about the state of the business, and the company’s recent seller-focused initiatives are likely to improve the health of the marketplace, according to KeyBanc Capital Markets.

The Analyst

Edward Yruma maintained an Overweight rating on eBay and raised the price target from $45 to $47.

The Thesis

eBay Open inspired greater confidence in the company’s managed delivery service as well as seller protections, which should support near-term earnings, Yruma said in a Sunday note. (See his track record here.)

eBay announced plans to roll out a managed delivery service, with customer service being handled internally and logistics being provided by a third-party. This will allow buyers to receive deliveries within three days in eBay packaging, the analyst said. 

The marketplace has improved seller protections, he said: top-rated sellers offering 30-day returns will receive financial protection against some types of customer complaints. 

Sellers are now able to offer partial refunds for damaged returns, and they can now self-scan at package drop-off and report seller fraud. 

“These changes were met with strong enthusiasm by sellers we spoke to at the Open, and we believe will help encourage them to remain focused on EBAY,” Yruma said. 

CEO Wenig expressed confidence in the state of the business, the analyst said. 

Payments intermediation is progressing well and seller feedback is strong, he said.

B2B remains an area of incremental interest, and the company’s comprehensive offering gives it significant scale advantages over niche marketplaces, according to KeyBanc. 

Price Action

Shares of eBay were rising by 0.85% at $41.58 at the time of publication Monday. 

Related Links:

Jim Cramer Gives His Opinion On eBay, Pfizer And More

The Street's Reaction To eBay's Q2: More Of The Same?

Latest Ratings for EBAY

DateFirmActionFromTo
Oct 2019MaintainsEqual-Weight
Sep 2019DowngradesOutperformMarket Perform
Sep 2019MaintainsBuy

View More Analyst Ratings for EBAY
View the Latest Analyst Ratings

Posted-In: Edward Yruma KeyBanc Capital MarketsAnalyst Color Price Target Reiteration Analyst Ratings

 

Related Articles (EBAY)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
NVDACascendMaintains220.0
ADBECleveland ResearchInitiates Coverage On283.0
IMOCiBCUpgrades
RETAJefferiesMaintains254.0
SNAPAreteUpgrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
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.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Mid-Afternoon Market Update: Crude Oil Up Over 1%; Lexicon Pharmaceuticals Shares Plunge

The Top VC Investors In Cannabis