Goldman Sachs Trims Price Target on eBay (EBAY)
Goldman Sachs maintained a Conviction Buy on eBay (NASDAQ: EBAY) and reduced its price target to $61.00 (from $64.00). The change follows Q2 results.
Analyst Heath P. Terry said, "eBay reported 2Q revenues of $4.37bn (+12.6% yoy vs. +13.7% in 1Q) and non-GAAP EPS of $0.69, vs. consensus at $4.39bn and $0.68, respectively. organic revenue growth was 10% vs. 13% in 1Q, as FX added 1.5ppts of growth and Braintree added 0.5ppts. eBay repurchased $1.7bn worth of shares and has $2.2bn in remaining repurchase authorization. While the data breach and Google algorithm update headwinds led to June GMV growth slowing to +7%, eBay is beginning to see Marketplaces recover in July and said it would be aggressive with targeted marketing efforts to reengage users in 2H14. eBay reiterated that its non-cash repatriation charge in 1Q was not an indication of planned M&A. With signs of growth reaccelerating, significant capital returns in process, and shares at 14X our 2015 adj. EPS estimate, we expect eBay to outperform in a volatile sector."
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Shares of eBay closed at $50.70 yesterday.