Mizuho Securities Cuts Price Target on eBay (EBAY) Following an In-Line 4Q and Disappointing Guide
Mizuho Securities reiterated a Neutral rating on eBay (NASDAQ: EBAY), and cut the price target to $26.00 (from $29.00), following the company's 4Q earnings report. The company reported net revenue and Non-GAAP EPS of $2.32b and $0.50, which was in-line with Street's revenue and EPS estimates. For 1Q16, eBay guided to net revenue of $2.05-$2.10b, below Street's $2.16b estimate. Non-GAAP EPS is expected to be $0.43-$0.45, also below Street's $0.48. The company continues to execute on its structured data initiative, but it will take time before the changes have a real positive impact on traffic and conversion.
Analyst Neil Doshi commented, "eBay reported an in-line 4Q, but the guide came in below expectations. The company continues to execute on its structured data initiative, but it will take time before the changes have a real positive impact on traffic and conversion. Furthermore, we are increasingly worried about the Macro environment, which had a negative impact on eBay's Marketplace biz a few years ago. We reiterate our Neutral rating and remain on the sidelines as we do not see any near-term catalyst for the stock."
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Shares of eBay closed at $26.42 yesterday.