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UPDATE: UBS Downgrades eBay (EBAY) to Neutral, 'Looking at Recession Scenarios'

June 28, 2022 4:17 AM EDT
Get Alerts EBAY Hot Sheet
Price: $36.81 -2.33%

Rating Summary:
    19 Buy, 26 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 10 | Down: 4 | New: 31
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(Updated - June 28, 2022 4:23 AM EDT)

UBS analyst Kunal Madhukar downgraded eBay (NASDAQ: EBAY) from Buy to Neutral with a price target of $48.00 (from $60.00).

The analyst comments "We are downgrading EBAY to Neutral from Buy and lowering our price target to $48 from $60 previously. Expectations are low, with non-Focus categories declining and with Focus categories, which are doing better, comprising purely discretionary spend which could be disproportionately impacted in a downturn. Based on our analysis, we expect 2022 GMV to decline ~(17)% y/y below the guide of (16)-(14)% and Street at (15)%, and we think the buy side may already be lower than the Street. YTD, the stock has been one of the better performers within the eCommerce space, benefiting from both a ~2% dividend yield and aggressive share repurchases. However, when the market rebounds, we think EBAY shares could lag smaller cap peers (which are likely to grow much faster in a recovery) until investors have better visibility into organic growth at eBay. Consequently, we think the shares likely will remain range-bound until visibility improves."

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 $44.38 yesterday.

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