eBay (EBAY) PT Raised to $101 at BofA Securities, 'we are constructive on QTD data'

BofA Securities analyst Justin Post raised the price target on eBay (NASDAQ: EBAY) to $101.00 (from $89.00) while maintaining a Neutral rating.

The analyst comments "US GMV of $9.4bn grew 7% y/y in 2Q (6pt accel q/q), with eBay’s eCommerce share growing 10bps y/y to 3.2%. US GMV benefited from an acceleration in Focus Category growth, which increased 10% y/y and outpaced core categories that grew 1%. In particular, mgmt. called out strength in trading cards, which benefited from a favorable product calendar for collectables. eBay also highlighted strategic AI initiatives around product listing ad titles on Google, personalized email communications, and listing image quality upgrades as growth drivers in the quarter. eBay believes that many of these and other initiatives can drive durable growth. For 3Q, eBay guided total GMV growth to 5%-7% y/y and indicated that the outlook reflects sustained, healthy US consumer trends. We estimate US GMV to grow 7.5% y/y, relatively stable q/q. We raise our PO to $101 from $89 based on a 22x GAAP P/E multiple (from 20x) to reflect recent sector multiple expansion, driven in part by strong QTD Online retail data (see July Online spend data). While we are constructive on QTD data, eBay’s growth continues to lag peers in the Big-5. Reiterate Neutral."

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