eBay (EBAY): Promoted Listings Can Contribute $700M In Profit, Raising PT - BMO

October 18, 2017 6:11 AM EDT
Get Alerts EBAY Hot Sheet
Price: $46.47 +3.70%

Rating Summary:
    19 Buy, 28 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 14 | Down: 24 | New: 13
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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".

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 $37.49 yesterday.

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