Cantor Fitzgerald raises eBay stock price target to $85 on strong GMV growth

Published 31/07/2025, 13:54
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Investing.com - Cantor Fitzgerald raised its price target on eBay (NASDAQ:EBAY) to $85.00 from $69.00 on Thursday, while maintaining a Neutral rating on the e-commerce company following its second-quarter earnings report. The stock has shown strong momentum this year, with a 26.27% year-to-date return, and InvestingPro data shows seven analysts have recently revised their earnings estimates upward.

The online marketplace reported second-quarter gross merchandise volume (GMV) and adjusted earnings per share that exceeded Wall Street expectations by 4% and 6%, respectively. The company’s GMV growth reached 4% year-over-year excluding foreign exchange effects, outperforming its previous guidance of -1% to 2%. Supporting this performance, eBay maintains impressive gross profit margins of 71.85% and has received a "GOOD" Financial Health Score from InvestingPro.

eBay’s growth was primarily driven by strength in focus categories, particularly cards and collectibles. For the third quarter of 2025, the company guided for ex-FX GMV growth of 3-5% year-over-year and indicated it is tracking toward the higher end of its full-year 2025 guidance of low single-digit percentage growth.

The e-commerce platform also raised its full-year 2025 adjusted earnings per share growth outlook to 10-12% year-over-year, up from the previous high single-digit percentage guidance. Cantor Fitzgerald increased its fiscal year 2026 GAAP EPS estimate by 4% following these results.

Despite the improved outlook, Cantor Fitzgerald maintained its Neutral rating on eBay shares, noting that at 18 times fiscal year 2026 estimated earnings, the current valuation adequately reflects the company’s long-term growth and profitability profile. According to InvestingPro’s Fair Value analysis, eBay is currently fairly valued. Subscribers can access 10 additional ProTips and a comprehensive analysis of eBay’s financial health in the Pro Research Report.

In other recent news, eBay reported a robust second quarter for 2025, with earnings per share of $1.37, surpassing analyst forecasts of $1.29. The company’s revenue also exceeded expectations, reaching $2.73 billion, compared to the anticipated $2.64 billion. Following these strong results, Needham increased its price target for eBay to $95 from $78, maintaining a Buy rating due to the company’s better-than-expected performance and growth acceleration. Similarly, Goldman Sachs raised its price target to $72 from $53, despite keeping a Sell rating. This adjustment was attributed to eBay’s strong earnings report, which highlighted better-than-expected gross merchandise volume, revenue, and non-GAAP EBIT margin. The firm noted particular strength in U.S. GMV trends and a slight upside in the take rate. These developments reflect positive performance metrics for the company in recent times.

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