Analyst Nathan Feather of Morgan Stanley maintained a Buy rating on eBay (EBAY – Research Report), reducing the price target to $71.00.
Nathan Feather has given his Buy rating due to a combination of factors that highlight eBay’s strong performance and potential for future growth. The company demonstrated a solid fourth quarter with a return to growth in Gross Merchandise Volume (GMV), an expansion in EBIT margins, and a notable 15% year-over-year increase in adjusted earnings per share. These positive indicators suggest a healthy marketplace and effective monetization strategies, despite a temporary setback in the first quarter guidance.
While the guidance for the first quarter showed a deceleration in GMV growth, attributed mainly to external factors, Feather considers this a short-term issue rather than a long-term trend. The overall outlook remains positive, with expectations of flat margins on a foreign exchange-neutral basis and slight expansion on a spot basis. Therefore, despite the near-term challenges, the underlying trends support the Buy rating, with eBay positioned well for continued performance improvement.
In another report released today, Barclays also maintained a Buy rating on the stock with a $72.00 price target.