eBay (EBAY): MELI Share Sale Increases Financial Flexibility - Baird
- Dollar lower, stocks flat as caution creeps in ahead of Trump inauguration
- General Electric (GE) Reports In-Line Q4 EPS
- Procter & Gamble (PG) Tops Q2 EPS by 2c
- IBM (IBM) Tops Q4 EPS by 13c, FY17 EPS Guidance Beats Consensus
- American Express (AXP) Misses Q4 EPS by 7c, FY17 EPS Guidance Tops Views at Mid-Poinit
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
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.
Shares of eBay closed at $31.50 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- eBay (EBAY): Expecting An Inline Quarter But '17 May Be Too High - Cowen
- Goldman Sachs Downgrades Equifax (EFX) to Sell
- UPDATE: JPMorgan Upgrades Checkpoint Software (CHKP) to Overweight
Create E-mail Alert Related CategoriesAnalyst Comments
Related EntitiesRobert W Baird
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!