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Needham & Company Downgrades eBay (EBAY) to Hold

July 18, 2013 8:27 AM EDT Send to a Friend
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Price: $55.43 -0.88%

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    30 Buy, 16 Hold, 0 Sell

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    Up: 6 | Down: 14 | New: 24
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Needham & Company downgraded eBay (NASDAQ: EBAY) from Buy to Hold as weak key international markets and rising concerns over marketplace growth limit 2H upside expectations.

Analyst Kerry Rice explains, "We are downgrading eBay to a HOLD from BUY due primarily to the slowdown in its key international markets. While the US market appears stable, our expectations for domestic demand are not strong enough to offset the international slowdown and deliver 2H upside. We also have increasing concerns over slowing Marketplace fundamentals. Despite investments in product initiatives, consumer awareness, and merchant ubiquity, we do not expect any single investment to serve as a momentum-changing catalyst in the near term. We expect eBay to continue to benefit from secular ecommerce growth trends, but believe investors could be better served focusing on other companies in the near term."

The firm cut FY2013 EPS from $2.75 to $2.70 and FY 2014 EPS from $3.24 to $3.18.

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 $57.38 yesterday.




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