UBS analyst Kunal Madhukar reiterated a Buy rating and $65.00 price target on eBay (NASDAQ: EBAY) seeing the second half of the year as a separate entity from the first half. eBay beat 1Q expectations but then guided down for 2Q and reset the outlook for the full year lower.

The analyst sees the outlook as positive however, stating "we believe the underlying turnaround story is attractive. Focus categories continue to outpace overall platform on volumes, advertising adoption is picking up, customer satisfaction improving, seller response to the changes is positive, and there is renewed focus on new product/feature launches, including the wallet, vault, and new payments options. Moreover, eBay continues to aggressively buy back shares and offers an attractive dividend, in our view. Expectations remain low, which is reflected in the valuation, with the shares trading at ~12x P/Adj EPS on 2023 estimates (vs S&P 500 at 17.5x), 8x est. EBITDA, and 8.2% est. FCF yield."

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Shares of eBay closed at $54.42 yesterday.