BMO Capital analyst Brian Pitz upgraded the rating on eBay to a Buy today, setting a price target of $102.00.
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Brian Pitz has given his Buy rating due to a combination of factors that highlight eBay’s strong performance and growth potential. The company’s focus categories have shown significant growth, accelerating from 6% to 10% year-over-year, which indicates a structural improvement in their business model. This growth is primarily driven by the success in segments like Collectibles and Parts & Accessories, signaling a positive inflection point for the company.
Additionally, eBay has experienced a return to growth in active buyers, with 134 million active users marking the fourth consecutive quarter of increase. This growth is supported by strategic integrations, such as with Klarna, which enhances the user experience and drives gross merchandise volume (GMV) growth. Furthermore, eBay’s advertising revenue presents a promising opportunity, with expectations of increased penetration over time. These factors, along with raised GMV estimates and an increased buyback assumption, contribute to the positive outlook and justify the Buy rating.
In another report released on July 23, Deutsche Bank also maintained a Buy rating on the stock with a $90.00 price target.