Wedbush Upgrades eBay (EBAY) to Outperform, PayPal Main Driver of Revenue by 2014
Tweet
Share
E-mailGet Alerts EBAY Hot Sheet
Price: $103.14 -1.38%
Rating Summary:
23 Buy, 28 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
23 Buy, 28 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Join SI Premium – FREE
Wedbush upgraded shares of eBay (NASDAQ: EBAY) to an Outperform rating from its previous rating of Neutral and boosted its price target from $35 to $48.
The firm believes that PayPal is strongly positioned in the early stages of mobile payments and will benefit strongly from it. PayPal recently announced and displayed its new payment system which is able to leverage multiple technologies for users.
Wedbush anticipates that PayPal will continue to grow at a 25-30 percent rate by extending its payment system to commerce. They forecast that PayPal will account for a large majority of eBay's revenues by as soon as 2014.
An analyst at Wedbush comments, "We believe the accelerated transition to being led by PayPal will help EBAY move to a premium 1.1x PEG multiple similar to closest comparables—Visa (NYSE: V) and Master Card (NYSE: MA) on one side and Amazon (Nasdaq: AMZN) on the other—up from the current 0.8x PEG."
The firm increased its 2012 EPS estimate from $2.33 to $2.40 due to higher expectations out of PayPal.
For more ratings news on eBay click here and for the rating history of eBay click here.
Shares of eBay closed at $32.04 yesterday.
The firm believes that PayPal is strongly positioned in the early stages of mobile payments and will benefit strongly from it. PayPal recently announced and displayed its new payment system which is able to leverage multiple technologies for users.
Wedbush anticipates that PayPal will continue to grow at a 25-30 percent rate by extending its payment system to commerce. They forecast that PayPal will account for a large majority of eBay's revenues by as soon as 2014.
An analyst at Wedbush comments, "We believe the accelerated transition to being led by PayPal will help EBAY move to a premium 1.1x PEG multiple similar to closest comparables—Visa (NYSE: V) and Master Card (NYSE: MA) on one side and Amazon (Nasdaq: AMZN) on the other—up from the current 0.8x PEG."
The firm increased its 2012 EPS estimate from $2.33 to $2.40 due to higher expectations out of PayPal.
For more ratings news on eBay click here and for the rating history of eBay click here.
Shares of eBay closed at $32.04 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Freedom Broker Upgrades Serve Robotics (SERV) to Buy
- Intuitive Machines Inc. (LUNR) PT Lowered to $32 at Cantor Fitzgerald, Reaffirms Overweight Rating
- UBS Reiterates Buy Rating on NVIDIA (NVDA), Expects Q2 Revenue Beat
Create E-mail Alert Related Categories
Analyst Comments, UpgradesSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
