Deutsche Bank Reiterates a 'Sell' on eBay (EBAY); Slowing Growth, but Accelerating EPS Growth Throughout 2012?
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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
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Deutsche Bank reiterates a 'Sell' on eBay (NASDAQ: EBAY) price target raised $2 to $23.
Deutsche analyst said, "We reiterate our rating on shares of eBay, and believe downside risk to shares exists. While e-commerce was strong industrywide in 4Q, eBay's growth in the core & PayPal decelerated as the easy comp period has ended. We see the company likely to revise growth down throughout 2012 as comps get tougher. Its outlook embeds 12% rev (excl. acq) and 8% EPS growth in 1Q, followed by 16% rev growth (excl. acq) and 13% EPS growth from 2Q to 4Q (on tough comps). We expect the underlying earnings multiple to contract to the 10x-11x range."
"For 1Q 2012, we are raising our EPS estimate to $0.49 from $0.44, with revs now at $3.07bn vs. $2.96bn previously. For 2012, we are calling for pro-forma EPS of $2.10 on revenues of $12.96bn, compared to our previous estimate of $12.60bn in revs and $1.92 in EPS. We are also introducing our 2013 estimates for revs/EPS of $13.32bn/$2.08."
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.
Deutsche analyst said, "We reiterate our rating on shares of eBay, and believe downside risk to shares exists. While e-commerce was strong industrywide in 4Q, eBay's growth in the core & PayPal decelerated as the easy comp period has ended. We see the company likely to revise growth down throughout 2012 as comps get tougher. Its outlook embeds 12% rev (excl. acq) and 8% EPS growth in 1Q, followed by 16% rev growth (excl. acq) and 13% EPS growth from 2Q to 4Q (on tough comps). We expect the underlying earnings multiple to contract to the 10x-11x range."
"For 1Q 2012, we are raising our EPS estimate to $0.49 from $0.44, with revs now at $3.07bn vs. $2.96bn previously. For 2012, we are calling for pro-forma EPS of $2.10 on revenues of $12.96bn, compared to our previous estimate of $12.60bn in revs and $1.92 in EPS. We are also introducing our 2013 estimates for revs/EPS of $13.32bn/$2.08."
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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