Cantor Fitzgerald Upgrades eBay (EBAY) to Hold; Cuts PT to $14

October 16, 2008 2:33 PM EDT

Cantor Fitzgerald upgrades eBay (Nasdaq: EBAY) from Sell to Hold and lowers its price target from $24 to $14.

Following eBay's Q3 earnings, which were reported yesterday after the close, the firm believes that this is "the first fundamental 'break' in eBay's outlook" since it has been a public company. As Cantor has been concerned with such an announcement for some time, it says that it is "somewhat encouraged to see it finally come to pass."

Cantor lowered its Q4 EPS and sales estimates from $0.48 and $2.48 billion to $0.39 and $2.09 billion respectively. The Street is expecting Q4 EPS of $0.46 and sales of $2.44 billion. For FY09, the firm lowered its EPS estimate from $1.91 to $1.58 and its sales estimate from $10.12 billion to $8.87 billion. The Street estimates are currently $1.89 for EPS and $9.96 billion for sales in '09.

The firm said, "While we continue to believe that eBay's revitalization efforts remain very much a work in progress and that marketshare losses will continue for some time to come, we believe that much of this risk is now (finally) priced into the company's shares and see a more balanced risk/reward profile for the stock than at any time in the last several years."

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.

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