Jefferies Says eBay's (EBAY) Full Recovery Will Take Time - PT to $25
Jefferies reiterated a Hold rating on eBay (NASDAQ: EBAY), and cut the price target to $25.00 (from $28.00), following the company's 4Q earnings report. eBay reported net revenue of $2.32B, in line with consensus estimates at $2.32B and at the high end of guidance. Non-GAAP EPS of $0.50 exactly met Street expectations. During the quarter, eBay repurchased approximately 19.9MM shares for an aggregate of $550MM. Its remaining authorization as of Dec 31, 2015 was $1.8B. However, despite progress in key strategic initiatives, more time is needed before any expected benefits materialize in operating results.
Analyst Brian Pitz commented, "eBay closed the year with a good qtr as the biz continues to stabilize but guidance came in soft. Despite progress in key strategic initiatives (e.g. transition to structured data), more time is needed before any expected benefits materialize in operating results. While mgmt saw small signs of softening in late Dec, overall eCommerce trends in the qtr were healthy with very strong performance during Cyber week (positive read-through for AMZN)."
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Shares of eBay closed at $26.42 yesterday.