Analyst John Blackledge of TD Cowen maintained a Hold rating on eBay, retaining the price target of $84.00.
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John Blackledge’s rating is based on a combination of factors, including eBay’s solid third-quarter performance, where revenue, gross merchandise volume (GMV), and earnings per share exceeded expectations. The growth was primarily driven by the company’s Focus Categories, particularly Collectibles, which saw significant year-over-year growth. However, despite these positive results, the guidance for the fourth-quarter operating income margin was slightly below estimates due to reinvestments and other headwinds.
While eBay’s strategic initiatives and strong performance in Focus Categories and U.S. sales are promising, the anticipated margin pressures from factors such as changes in depreciation schedules, managed shipping costs, and M&A-related expenses present challenges. These considerations led to maintaining a Hold rating, with the price target remaining unchanged at $84, as the stock’s potential upside appears limited given the current market conditions and operational challenges.
Blackledge covers the Communication Services sector, focusing on stocks such as Alphabet Class C, Meta Platforms, and Netflix. According to TipRanks, Blackledge has an average return of 12.5% and a 56.30% success rate on recommended stocks.
In another report released yesterday, Bank of America Securities also reiterated a Hold rating on the stock with a $100.00 price target.