Cantor Reiterates Buy On Ebay Following 3Q14 Results
In a research report issued today, Cantor analyst Youssef Squali reiterated a Buy rating on Ebay (NASDAQ:EBAY) with a price target of $60.
Squali wrote, “3Q results were virtually in line with Street expectations, with strength in PayPal largely offsetting a weaker Marketplaces segment. FY:14 outlook was reduced, largely on the lagging effects of the global password reset, and Google’s search changes (in May) as well as a FX headwind, as we discussed in our preview. We’re adjusting our PT to $60 (from $63) and maintaining a BUY rating based on 1) an attractive valuation at ~8.5x FY:15 EBITDA, which bakes in no material improvement in Marketplaces and a slowing PayPal, 2) PayPal’s spin off, which should support a SOP of $60; and 3) $2B+ in active buyback. An in-line quarter. Revenues were $4.35B vs. consensus’ $4.37B while pro forma EPS (PFEPS) were $0.68 vs. Street expectations for $0.67. Organically (excl. FX, acquisitions), top line grew 10% Y/Y, consistent with 2Q and below.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Youssef Squali has a total average return of 28.6% and a 64.1% success rate. Squali has a 10.5% average return when recommending EBAY, and is ranked #6 out of 3335 analysts.