Broadpoint.Amtech Reiterates a Buy' on eBay (EBAY); Adjusts PT & Estimates

October 22, 2009 11:14 AM EDT

Broadpoint.Amtech reiterates a Buy rating on eBay, Inc. (Nasdaq: EBAY), raises price target from $27 to $29.

Broadpoint analyst says, "First, we believe that the negative after-hours stock movement was more a function of misunderstanding the guidance than anything in the 3Q performance. At first glance, guidance was underwhelming versus expectations, but $100mil in revenue and $0.02 EPS was excluded because of the expectation of a mid-quarter close for the Skype deal...As for the company, we had been bears on eBay for years until our July 23 upgrade. At that time we upgraded because the comparables and currency issues alone would likely lead to at least optical improvements in trends in 3Q and 4Q. We also said that if the company actually demonstrated fundamental improvements in its core business, then sentiment would become even more positive. Well, with the 3Q results, we believe the company is actually showing some fundamental improvement.

Our 2009 non-GAAP EPS estimate goes to $1.56 from $1.50 on the 3Q beat and improving Marketplaces fundamentals heading into 4Q (our 4Q estimate goes to $0.42 from $0.39). Our 2010 EPS estimate goes to $1.77 from $1.69. Our forward estimates continue to include Skype for the time being, given uncertainty about when the deal will close."

To see more analyst ratings on EBAY Click Here.

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