In a report released today, Nathan Feather from Morgan Stanley maintained a Buy rating on eBay, with a price target of $89.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Nathan Feather has given his Buy rating due to a combination of factors that highlight eBay’s strong performance and potential for continued growth. The company has shown impressive growth in its Gross Merchandise Volume (GMV), with a 4% year-over-year increase in the second quarter, exceeding expectations. This growth is supported by eBay’s strategic focus on its core categories, horizontal investments, and geographic-specific initiatives, with notable contributions from the US market and trading cards.
Furthermore, eBay’s profitability remains robust, with an adjusted EBIT margin of 28.4% in the second quarter, surpassing consensus estimates. Despite plans to reinvest some of this upside, the company’s growth appears sustainable, with potential for further expansion through new initiatives like partnerships and platform enhancements. Feather’s analysis suggests that while there may be some short-term challenges, the overall growth trajectory for eBay is promising, leading to an increased price target and a Buy recommendation.
According to TipRanks, Feather is a 4-star analyst with an average return of 17.2% and a 67.65% success rate. Feather covers the Consumer Cyclical sector, focusing on stocks such as eBay, Chewy, and Etsy.
In another report released today, BMO Capital also upgraded the stock to a Buy with a $102.00 price target.