Piper Jaffray's Munster Downgrades eBay (EBAY) to Underweight

Piper Jaffray downgraded eBay (NASDAQ: EBAY) from Neutral to Underweight with a price target of $49.00 (from $55.00).

Analyst Gene Munster commented, "Last September we downgraded shares of EBAY to Neutral based on a belief that Apple Pay will become an increasing threat to PayPal. Today, we are downgrading shares to Underweight based on a belief that over the next 1-3 years Google Wallet, Apple Pay, Facebook, Samsung and traditional banks will weigh on PayPal valuation and market share. Shares of EBAY are up 12% since the beginning of February based on optimism around the PayPal spin-out. Where we could go wrong: New CEO Dan Schulman is impressive and will energize the product line which could move PayPal back to the front of payments innovation, Google could acquire PayPal for its 160m user base. We are downgrading to Underweight with a $49 price target."

The firm adjusted FY 2015 EPS from $306 to $3.07 and FY 2016 EPS from $3.27 to $3.26.

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 $58.43 yesterday.

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