eBay share price target cut to Stifel, citing currency pressures
Stifel cut EBAY from eBay Inc.,
price target at $60 vs. $62 amid currency pressures and headwinds in international online market activity. “We leave our 2Q estimates relatively unchanged, however, due to international currency devaluations, our estimates are down slightly,” Stifel analyst Scott Devitt wrote in a note. “Our Q2 GMV estimate drops to $18,352 million (-18.8% y/y) and our revenue estimate to $2,382 million (-10.7% y/y), both remaining consistent with consensus expectations and forecasts.” Stifel expects eBay results to benefit from the scaling of the company’s focus categories and the conversion of high-value buyers, offset by macroeconomic headwinds. “We are lowering our 2H:22 estimate for eBay’s international business on expectations that European e-commerce will continue to face headwinds throughout the year, particularly FX,” Devitt wrote. Stifel maintained its buy rating on eBay. eBay’s stock was recently downgraded to neutral on the buy at UBS, citing concerns about how the e-commerce sector could fare in the event of a downturn. Shares of eBay rose 0.2% to $42.11 in premarket trading. The company’s stock has fallen 36.8% this year, compared to the SPX of the S&P 500,
20.5% drop. eBay shares ended Thursday’s session down 1.1% at $42.03, outpacing the S&P 500’s 0.3% decline.