Nikhil Devnani, an analyst from Bernstein, maintained the Buy rating on eBay (EBAY – Research Report). The associated price target remains the same with $70.00.
Nikhil Devnani has given his Buy rating due to a combination of factors that highlight eBay’s potential for growth and stability. Despite a softer-than-expected GMV outlook for Q1, eBay’s performance in Q4 was strong, aided by the holiday season, and the company’s margins have remained robust. This resilience in margins, even amidst ongoing investments, suggests a solid financial footing.
Moreover, eBay’s strategic initiatives, such as expanding focus category coverage and regional efforts, are expected to drive GMV improvement. Although there are macroeconomic pressures and risks, particularly in Europe, the company’s product roadmap and potential growth channels like Facebook Marketplace present opportunities for future growth. These factors collectively underpin Devnani’s optimistic outlook on eBay’s ability to deliver on its growth targets, justifying the Buy rating.
In another report released today, Barclays also maintained a Buy rating on the stock with a $72.00 price target.