In a report released today, Youssef Squali from SunTrust Robinson maintained a Hold rating on Ebay (NASDAQ: EBAY), with a price target of $38. The company’s shares opened today at $29.47, close to its 52-week low of $28.66.
Squali said:
“We maintain our Hold rating. How much does PayPal see on eBay? We believe PayPal intermediates the vast majority of payments on eBay (>80% of Marketplace GMV, by our estimate). While eBay is slowly intermediating payments themselves, the company 1) did not announce that they began intermediating payments on its Marketplace platform in the U.S. until 9/25 (i.e. very end of 3Q) and 2) eBay can only intermediate up to 5% of GMV until June of 2019. Additionally, previous earning reports show PayPal can be a good read through to eBay. PayPal reported 6% Y/Y FXN growth for 1Q and 2Q volumes on eBay vs. eBay’s actual report of 7% and ~6% (excluding Giosis) Y/Y FXN Marketplace GMV growth for 1Q and 2Q, respectively. What does this mean for consensus estimates? We believe estimates will need to come down for 2H18/2019.”
According to TipRanks.com, Squali is a top 100 analyst with an average return of 19.9% and a 66.8% success rate. Squali covers the Services sector, focusing on stocks such as Blue Apron Holdings Inc, Stitch Fix Inc, and Cimpress.
Currently, the analyst consensus on Ebay is a Moderate Buy with an average price target of $42.14, implying a 43.0% upside from current levels. In a report released today, Stifel Nicolaus also downgraded the stock to Hold with a $35 price target.
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The company has a one-year high of $46.99 and a one-year low of $28.66. Currently, Ebay has an average volume of 10.33M.
Based on the recent corporate insider activity of 120 insiders, corporate insider sentiment is negative on the stock. Most recently, in August 2018, Jae Hyun Lee, the SVP, EMEA of EBAY sold 47,739 shares for a total of $1,630,217.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
eBay, Inc. is a commerce company, which engages in the provision of investments and acquisitions to help enable commerce on platforms for buyers and sellers online or on mobile devices. It operates throught the following platforms: Marketplace; Classifieds; StubHub, Corporate, and Others.
