Evercore Partners Upgrades eBay (EBAY) to Overweight

March 14, 2013 6:58 AM EDT Send to a Friend
Get Alerts EBAY Hot Sheet
Price: $54.42 -0.22%

Rating Summary:
    25 Buy, 22 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 18 | New: 41
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Evercore Partners Ken Sena upgraded eBay (NASDAQ: EBAY) from Equal Weight to Overweight with a price target of $64.00 (from $54.00) following yesterday's sell-off following comments by MasterCard's (NYSE: MA) Chris A. McWilton, President of North America, at Credit Suisses' Global Services Conference which compounded the effect of softer-than-expected ChannelAdvisor data.

"Upon closer assessment of the MasterCard comments and subsequent conversations with EBAY and MA for greater clarity, we view the selloff as largely overdone and recommend buying EBAY shares on weakness," Sena said.

MasterCard fee increase to take effect July 1st and all digital wallet transactions considered to be veiling transaction data from either the payment source or the merchant are subject, according to the analyst. While the specifics of the increase were not disclosed, Sena said it is very manageable. "We estimate the impact to be less than 50 bps of PayPal's margin, even assuming a FY’s worth of pro forma impact at a 50% increase.

"Marketplaces' success in achieving growth commensurate with the ecommerce industry
(mid-to-high teens), PayPal’s large and growing addressable market opportunity, and the company’s continued progress in mobile makes eBay a compelling investment, and we are taking advantage of this pullback to recommend shares," the analyst said.

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 $50.98 yesterday.


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