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On Thursday, CFRA analysts increased the price target for eBay stock (NASDAQ: NASDAQ:EBAY) to $87 from $77, while maintaining a Buy rating. The decision reflects improving gross merchandise volume (GMV) trends and potential for margin expansion, supported by the company’s impressive 71.85% gross profit margins. According to InvestingPro data, 11 analysts have recently revised their earnings estimates upward for the upcoming period, suggesting growing confidence in eBay’s prospects.
The analysts noted that the new target price suggests a 15.6x multiple of their 2025 earnings per share (EPS) estimate of $5.58, which has been revised up from $5.52. The 2026 EPS estimate has also been increased to $6.06 from $5.94. Currently trading at a P/E ratio of 18.35x, the stock is above eBay’s long-term average forward price-to-earnings ratio of about 14.0x. InvestingPro’s Fair Value analysis suggests the stock is currently fairly valued, with additional insights available in the comprehensive Pro Research Report.
eBay shares, alongside other e-commerce companies like Etsy (NASDAQ:ETSY), have outperformed the broader market over the past month. This performance is partly attributed to weaker traffic at competitors Temu and Shein, following the closure of the de minimis tax exemption on May 2.
The analysts view eBay as a more defensive option in the e-commerce sector. They pointed out that used and refurbished items account for roughly 40% of eBay’s GMV, and direct tariff exposure from China to the U.S. is limited to about 5% of GMV. Additionally, eBay maintains a strong share buyback program and is valued attractively compared to peers.
The Buy rating reflects CFRA’s above-consensus EPS estimates for 2025 and 2026, further supporting their positive outlook on eBay’s stock performance.
In other recent news, eBay’s first-quarter earnings have drawn attention from multiple analyst firms, resulting in several price target adjustments. Needham has raised eBay’s price target to $78, citing strong first-quarter results and an impressive performance in Gross Merchandise Volume (GMV), which outperformed expectations. Susquehanna also increased its price target to $70 following eBay’s earnings report, which exceeded projections, and noted robust trends in the current quarter. Stifel made a slight upward adjustment to $62, maintaining a Hold rating, and highlighted eBay’s resilience against economic uncertainties due to its focus on refurbished goods. Meanwhile, JPMorgan adjusted its price target to $66, reflecting eBay’s strategic innovations and growth in key categories.
eBay’s management has confirmed its full-year outlook, though they acknowledged potential challenges from macroeconomic and tariff-related factors. The company has been focusing on enhancing user experience with initiatives like AI-powered tools and expanded payment options. Additionally, eBay’s advertising and payments segments have shown positive contributions to revenue growth. Despite these advancements, JPMorgan and other analysts remain cautious, noting execution risks and the need for more visibility into sustained growth. Investors are closely monitoring how eBay navigates these challenges and maintains its strategic trajectory.
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