UPDATE: UBS Assumes Coverage on eBay (EBAY), Upgrades to Buy
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UBS analyst Kunal Madhukar assumes coverage on eBay (NASDAQ: EBAY) with a Buy rating (from Neutral) and a price target of $80.00.
The analyst comments "We assume coverage of eBay Inc. (EBAY) shares with a Buy rating and $80 price target. We think the Street is under estimating the potential from advertising, especially as 1) eBay recently added three new ad units (vs only promoted listings previously) including offsite ads which will not be constrained by inventory, 2) eBay's take rate is lower than other platforms, including Amazon and Etsy, thus B2C sellers who sell on multiple platforms, would have the potential to pay more in advertising fee if that resulted in faster sales velocity, and 3) more advertising spend will be directed at eCommerce platforms in the future where ROAS can be measured with full attribution. In addition, with the platform rationalization largely done and Managed Payments rolled out, the new management team will be driven to add shareholder value via making fundamental changes to the platform -- such as the acquisition of Sneaker Con (link) -- which could result in GMV growth once it laps the tough comps. The company is planning to host an Investor Day "early" next year. Although eBay has not disclosed the date, what is key is they are planning to do this for the first time in many years."
Shares of eBay closed at $66.81 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Hot Comments, Hot New Coverage, Hot Upgrades, New Coverage, Upgrades
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