Cantor Maintains Hold On eBay Inc (EBAY) As Business Trends Expected To Remain Weak Throughout 1Q:16

In a research report sent to investors Wednesday, Cantor analyst Youssef Squali reiterated a Hold rating on shares of eBay Inc (NASDAQ:EBAY) with a price target of $24, as his checks indicate no meaningful improvement in visitation to eBay or pickup in Same-Store Sales (SSS) so far in 1Q:16.

Squali wrote, “US desktop uniques (UVs) to eBay sites (ex. StubHub) were down 12% Y/Y in Jan/Feb vs. -3% in 4Q:15. Normalizing for tougher comps, Y/Y growth in UVs improved ~200bps vs. 4Q:15 levels. Mobile visitation appears to be soft as well, with Y/Y growth in mobile visits decelerating ~800bps over 4Q levels (normalized).” Furthermore, “SSS was up 4% Y/Y in January and 5.3% in February (excl. one extra day) for merchants selling on eBay, showing no meaningful change vs. 2015 levels and materially below the double digit growth in ecommerce overall.”

The analyst concluded, “While management’s focus on key initiatives around structured data should arguably pay-off over time, we view this as a multi-year journey, and have yet to see any discernible impact on traffic or GMV so far.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Youssef Squali has a total average return of 14.1% and a 63% success rate. Squali has a 16.7% average return when recommending EBAY, and is ranked #16 out of 3757 analysts.

Out of the 30 analysts polled by TipRanks, 21 rate Ebay stock a Hold, while 9 rate the stock a Buy. With a return potential of 18%, the stock’s consensus target price stands at $28.44.



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