EBay slips on mixed analyst reaction to investor event
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EBay Inc. (EBAY
-1.6%) gave back some its gain from Thursday afternoon when sentiment was boosted by the presentation by execs at an investor event. So far, analysts have been generally mixed in their reaction to the eBay event.
Mizuho Americas said the key points from the event were that eBay would expand core categories that could drive e-commerce growth such as collectibles, auto parts and electronics, as well as the focus from the company on high-value users that contributed 75% of GMV and purchase across categories.
Bank of America analyst Justin Post said eBay (NASDAQ:EBAY) execs did a good job addressing questions on GMV growth, margins and capital returns. Post noted eBayâs outlook of +5% GMV and 7% to 8% revenue growth in 2024 suggests better-than-Street exit growth rates, and could lead to multiple expansion for the stock if achieved. BofA still has its eyes on the impact of higher gas prices on the eBay consumer in 2022.
Elsewhere on Wall Street, Piper Sandler cut its price target on EBAY to $68 from $73 and Benchmark clipped its PT to $71 from $75. Baird kept an Outperform rating on EBAY, noting the strategy and outlook appear very reasonable, but warning some investors may be a little disappointed by low-to-mid single-digit GMV targets for 2023 and 2024.
Shares of EBAY fell on Friday after the company set FY22 EPS guidance at $4.20 to $4.40 vs. the consensus mark of $4.32.
Read more about eBay presentation.