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With Stores Shuttered, Stifel Turns Bullish On eBay

With Stores Shuttered, Stifel Turns Bullish On eBay

Ongoing stay-at-home directives and mass closures of physical retail stores due to the coronavirus has prompted consumers to spend more money online, and this trend bodes well for eBay Inc (NASDAQ: EBAY), according to Stifel. 

The eBay Analyst

Scott Devitt upgraded eBay from Hold to Buy with a price target lifted from $40 to $45.

The eBay Thesis

Third-party data points to a dramatic acceleration in online sales in March and momentum that carried over through April, Devitt said in a Friday upgrade note. (See his track record here.)

Google search trends show that peak search interest for eBay occurred within the past week relative to the past year, the analyst said. 

The online platform is particularly well-positioned within the home electronics category and should take advantage of an increase in demand from the shift of work and education into homes, he said. 

Over the longer-term, the economic fallout from the global pandemic could serve as a catalyst in accelerating "traditional retail dislocation," Devitt said. 

The company is also taking steps to support the sellers on its platform and help support the business, the analyst said, giving the examples of free listings, deferred payments and preventing a downgrade in ratings due to service disruptions.

Finally, the appointment as Jamie Iannone as CEO will bring an "experienced e-commerce operator" to the C-level team, he said.

Iannone's experience includes successfully managing e-commerce businesses at scale, including the role of COO of Walmart Inc's (NYSE: WMT) online business, where he successfully built the e-commerce platform for the world's largest retailer, according to Stifel. 

eBay Price Action

Shares of eBay were trading higher by 3.76% at $39.34 at the time of publication Friday afternoon.

Related Links:

Etsy's Sellers Are 'Losing Traction' Amid Coronavirus Outbreak

Benzinga's Top Upgrades, Downgrades For April 24, 2020

Latest Ratings for EBAY

Apr 2021Evercore ISI GroupAssumesIn-Line
Apr 2021Wolfe ResearchInitiates Coverage OnOutperform
Feb 2021Piper SandlerMaintainsOverweight

View More Analyst Ratings for EBAY
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