Piper Jaffray Removes eBay (EBAY) from Internet Top Pick List

May 14, 2008 9:33 AM EDT

Piper Jaffray is out with a research note this morning on eBay (Nasdaq: EBAY) removing the company as an Internet Top Pick due to weakness in U.S. GMV which will likely create near-term overhang. The firm maintains a Buy rating on eBay and lowered its price target from $40 to $38.

The firm believes slowing buyer activity in the U.S. will translate into slightly slower marketplace growth over Q2. Piper now sees eBay's marketplace growth as 3% year-over-year, down from its previous estimate of 8%. At the same time, Piper sees increased international marketplace listings, especially in Germany, and is raising its Q2 international marketplace growth estimate on eBay from 15% to 18% year-over-year.

Piper expects international growth to only slightly offset lower-than-expected listings in the U.S. and, consequently, the firm lowers its Q2 revenues estimate on eBay from $2.191 billion to $2.186 billion while maintaining its EPS estimate of $0.42. The Street estimates for revs and EPS are $2.15 billion and $0.41, respectively.

The firm's price target on eBay still represents a potential 21% gain from yesterday's closing price of $31.41.

eBay, Inc. and its subsidiaries provide online marketplaces for the sale of goods and services, online payments services, and online communications offerings to individuals and businesses in the United States and internationally.

Related Categories

Analyst Comments
Insiders' Blog

Stocks Mentioned

Related Entities

• Piper Jaffray

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?