eBay initiated with a Neutral at Wedbush

Wedbush analyst Scott Devitt initiated coverage of eBay (EBAY) with a Neutral rating and $70 price target The firm notes management has successfully stabilized gross merchandise value, or GMV, growth following a period of volatility and negative growth post-pandemic. Wedbush sees a path to modestly faster GMV growth over the intermediate-term as focus categories expand to a greater share of GMV and market-specific initiatives continue to scale. The firm thinks this translates to low-single digit GMV growth in the coming years with slightly faster revenue growth. Its model implies mid-single digit EPS growth over the next five years supported by margin gains and share buybacks as the company remains committed to returning capital to shareholders. While Wedbush holds a favorable view of the company’s long-term strategy, free cash flow dynamics, and capital allocation approach, it sees few near-term catalysts to drive upside to estimates or a material inflection in growth.