Despite Some Headwinds, EBay (EBAY) Growing Slowly and Steadily - Baird

Baird is maintaining their Outperform rating and $61 price target on Ebay (NASDAQ: EBAY), noting slight result improvement in January versus the holidays.

Analyst Colin Sebastian explains that growth in January is to be expected to be between 6%-7%, which is up from 4%-5% during the holidays but not as big prior tracking of 9%-10% in late December.

With the exception of Germany, European e-commerce is looking to improve in 2015. The $61 price target, "..is based on 17.4x 2016E P/E and 11.3x 2016E EV/EBITDA estimates, slightly below comparable averages of 20.5x and 13x, respectively, due to eBay's overall slower growth rate and competitive issues."

The analyst also notes that layoffs are begin at eBay and PayPal in order to simplify the company's organizational structure ahead of the 2H spinoff. "The cuts are expected to skew towards the Marketplace business, and will ultimately impact 7% (~2,400) of the workforce," he 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 $54.33 yesterday.

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