eBay (EBAY): MELI Share Sale Increases Financial Flexibility - Baird

October 13, 2016 6:24 AM EDT
Get Alerts EBAY Hot Sheet
Price: $29.06 +0.14%

Rating Summary:
    27 Buy, 25 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 14 | Down: 11 | New: 8
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Baird analyst, Colin Sebastian, reiterated his Outperform on eBay (NASDAQ: EBAY) noting that the MercadoLibre (NASDAQ: MELI) share sale offers the company increased financial flexibility. eBay is selling 5.5-6.3 million shares for ~$1-$1.2B pretax profit. This capital can be used to increase share buybacks, make strategic acquisitions, or expand more aggressively in Latin America under a new strategic agreement with MercadoLibre. Consequently, this a net positive for both eBay's international growth prospects as well as incremental capital returns to shareholders.

No change to the price target of $35.

For an analyst ratings summary and ratings history on eBay click here. For more ratings news on eBay click here.

Shares of eBay closed at $31.50 yesterday.

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