Nomura Securities Maintains a 'Neutral' on eBay (EBAY); 4Q11 Review

Nomura Securities maintains a 'Neutral' on eBay (NASDAQ: EBAY) price target of $32.00.

Analyst, Brian Nowak, said, "Last night, eBay reported non-GAAP EPS of $0.60, beating us by 2 cents and consensus by 3 cents. Total segment contribution beat our estimates by 10%, with two-thirds of the beat driven by Marketplaces (driven by higher-than-expected margins) and one-third from PayPal. 4Q Marketplaces’ margins were strong, but N. American core GMV was disappointing, growing only 10%, 800bp below our estimate of 18%. We continue to question the sustainability of the recent mid-teens core GMV growth rates heading to 2012 with more difficult compares. PayPal continues to perform strongly on the top and bottom line. eBay guided to full-year 2012 revenue of $13.7-14.0bn and non-GAAP EPS of $2.25-2.30. We are raising our revenue estimate from $13.2bn to $13.7bn, and our 2012E EPS estimate to $2.32 from $2.28 due to our higher estimates and the flow-through of the 4Q beat."

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 $30.34 yesterday.

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