Wedbush Adds eBay (EBAY) to Best Ideas List: Transformation to Payments-Driven Co. Creates Substantial Upside

Wedbush reiterates an 'Outperform' on eBay (NASDAQ: EBAY) price target of $48.00.

Wedbush analyst says, "The Wedbush Investment Committee is adding EBAY to the Best Ideas List...We believe EBAY will outperform as it transforms into a payments-driven company and garners V/MA like multiples...We believe PayPal will continue to grow 25%+, making it eBay’s largest business by 2014 and sustaining overall mid-teen revenue growth, in contrast to consensus expectations for decelerating growth. We expect growth from the expansion of merchant services footprint, international eBay marketplace penetration, Bill Me Later and starting in 2013, [email protected] believe that PayPal@POS will be accretive, in spite of initially lower take rates and transaction margins...eBay break-up would release value, but keeping businesses together will add far more, in our opinion."

Wedbush maintains FY12 EPS estimate at $2.34 and introduces FY13 of $2.72.

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 $33.16 yesterday.

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