Citi analyst Ygal Arounian has reiterated their bullish stance on EBAY stock, giving a Buy rating today.
Ygal Arounian has given his Buy rating due to a combination of factors that highlight eBay’s strong potential for growth and innovation. Despite a slower start to the year and some initial concerns about the first quarter guidance, eBay’s product innovation efforts are seen as promising and are expected to yield positive results. The company’s development of its own large language models and successful implementation of generative AI are key drivers of this optimism.
Furthermore, eBay’s strategic partnerships and acquisitions, such as those with Facebook Marketplace and OpenAI Operator, as well as the acquisitions of Goldin and Caramel, are enhancing its focus categories and expanding its market reach. Although there are some macroeconomic challenges in regions like the UK and Germany, eBay’s strong performance during the holiday season and its commitment to share buybacks provide additional confidence in its future prospects. The target price of $80 reflects these positive expectations, with a projected share price return of 15.7%.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $71.00 price target.