Collins Stewart Upgrades eBay (EBAY) to Hold

April 23, 2009 7:50 AM EDT

Collins Stewart upgrades eBay (Nasdaq: EBAY) to Hold.

Collins analyst says, "Ten days after we cut our above consensus est and downgraded the shares to Sell, eBay's Mar Q proved us wrong. EBAY reported a Clean Beat & In-Line Mar Q. Most of the upside was due to the out performance of Marketplaces, which in our view was supported by some recovery in E-Commerce combined with the move toward fixed price format, free shipping (30% of listings), and several other arguably "Amazon style" changes EBAY has been implementing. Though one qtr does not make a trend, some metrics that we observed may eventually turn out to be early signs of transformation in Marketplaces. However, metrics for BML were disappointing, shopping.com continues to struggle (with no NT trend reversal), and take rate for Marketplaces may suffer in 2h-09 due to service level discounts to merchants. We are upgrading EBAY to a Hold and would be more constructive if we see pull back in shares or/and more signs of sustainable improvements in Marketplaces."

eBay Inc. (eBay) provides online marketplaces for the sale of goods and services, as well as other online commerce, or ecommerce, platforms, online payments services and online communications offerings to a diverse community of individuals and businesses.

To see more analyst ratings on EBAY Click Here.

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