Growth at eBay's (EBAY) Skype Better Than Expected -Piper Jaffray

Piper Jaffray issued a research report this morning on eBay (Nasdaq: EBAY), as the Company's Skype platform is tracking better-than-expected. The firm has a Buy rating and $34 price target on shares of eBay.

The firm said an analysis of Skype's online usage has show Piper that its Q1 estimates may prove to be conservative. Based on higher average Skype users (8.97M users online in Q1 vs. 7.58M users online in Q4) and stronger Skype downloads (855.5M vs. 773M at the end of Q4), the firm believes revenue growth at the eBay segment could reach as high as 18% quarter-over-quarter.

Piper Jaffray had previously estimated Q1 revenues at Skype would reach $121 million, representing 5% q/q growth, but the 18% growth derived from its analysis now implies revenues in the range of $130-$135 million.

Notably, Piper's $34 price target on eBay only represents a 6.7% return from yesterday's closing price of $31.86.

eBay, Inc. and its subsidiaries provide online marketplaces for the sale of goods and services, online payments services, and online communications offerings to individuals and businesses in the United States and internationally. [BCS]
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