Deutsche Bank Downgrades GSI Commerce (GSIC) to Hold; Acquired by eBay, Chances Low for Another Big Fish

Deutsche Bank downgraded GSI Commerce (NASDAQ: GSIC) from Buy to Hold. PT $28.

Deutsche analyst says, "Under the terms of the agreement, GSI may solicit proposals from third-parties for a 40-day “go-shop” period. We think there is a less than 5% chance this scenario would play out, especially from the likely suspects: Amazon (Nasdaq: AMZN) (large brands un-comfort factor), Google (Nasdaq: GOOG) (e-commerce early stages), IBM (NYSE: IBM) (already has WebSphere) and Oracle (Nasdaq: ORCL) (still digesting ARTG acquisition). If there is a bidder, we think it will likely come unlikely suspects, such as Walmart(NYSE: WMT) / Sears (Nasdaq: SHLD) (looking to build dominance in e-commerce) or an Asia-based company seeking to build its presence in the US, such as Rakuten (already owns Buy.com) or the Alibaba Group."

For more ratings news on GSI Commerce click here and for the rating history of GSI Commerce click here.

Shares of GSI Commerce closed at $29.16 yesterday.

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