eBay (EBAY): Promoted Listings Can Contribute $700M In Profit, Raising PT - BMO
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BMO Capital analyst, Daniel Salmon, reiterated his Market Perform rating on shares of eBay (NASDAQ: EBAY) and raised his price target to $40 from $36 on the belief that Promoted Listings presents a $1.0B+ opportunity and that margins can approach 70% on a standalone basis.
The analyst stated "we believe the company's decision to discontinue third-party product listings
ads across eBay will encourage greater adoption of Promoted Listings and create a healthier ecosystem; we estimate the company will lose ~$150mm in ad revenue as a result of this but see it being more than offset by growth in Promoted Listings revenue".
Shares of eBay closed at $37.49 yesterday.
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