Topeka Maintains Hold On eBay As 2Q14 Earnings Fall Below Consensus Revenues

Topeka Capital analyst Victor Anthony was out today with some bearish comments on eBay Inc. (EBAY), reiterating his Hold rating with a $54 price target, following 2Q14 earnings reports, which failed to meet consensus revenues.

Anthony wrote: “eBay reported a mix 2Q with a miss on consensus revenues and a $0.01 beat on EPS. Commentary on the call suggests that the negative impacts felt in the quarter continue into 3Q. We maintain our Hold rating as we see challenges growing the core consistently above e-commerce, challenges monetizing off-line initiatives, and stepped-up investments at Payments, likely limiting management’s ability to post beat and raise quarters. Further, while the Payments business remains resilient in the face of competitive threats, we believe the business will eventually feel pressure from current and potential future competition. Outside of a recovery from the 2Q impacts, we see few catalysts that would take the shares higher”.

According to, which measures analysts and bloggers success rate based on how their calls perform, analyst Victor Anthony currently has a one-year average return of 17.9% and an 68% success rate. Anthony has a 2.4% average return when recommending EBAY, and is ranked #84 out of 3215 analysts.

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