'Bill Me Later', Buy eBay (EBAY) Now

November 29, 2012 11:58 AM EST
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Price: $30.29 --0%

Rating Summary:
    28 Buy, 25 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Analysts at Nomura reiterated a Buy rating on eBay (Nasdaq: EBAY), citing a number of positives includng Bill Me Later, a program that extends credit to PayPal users.

"As we have written, BML is additive to PayPal's margin profile because it has a 3x higher average revenue take rate than the core PayPal business (meaning more revenue dollars to spread over the cost structure)," said analyst Brian Nowak.

Nowak is also bullish on eBay based on PayPal's improving margin profile and growing contribution to eBay's overall profitability.

"Our recent meeting with eBay reaffirmed that the drivers for continued higher PayPal profitability are in place and that the Marketplaces business remains healthy with more subtle improvements aimed at improving conversion yet to come," said Nowak.

Nomura has a $59 price target on Ebay.

For an analyst ratings summary and ratings history on eBay (Nasdaq: EBAY) click here. For more ratings news on eBay click here.

Shares of eBay closed at $51.47 yesterday.

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