Street Calls of the Week
Investing.com - Citizens upgraded eBay (NASDAQ:EBAY) from Market Perform to Market Outperform on Friday, setting a price target of $115.00. The stock currently trades at $95.52, having delivered an impressive 37.9% return over the past six months.
The upgrade reflects Citizens’ confidence that eBay’s product improvements are creating a "significantly better consumer experience" in Focus categories, which could drive mid-single-digit GMV (Gross Merchandise Value) growth in 2026, approximately two percentage points ahead of current consensus estimates. The company’s strong execution is reflected in its impressive 71.9% gross profit margins, according to InvestingPro data.
Citizens noted that eBay’s work on Focus categories remains in early stages, with room for existing category experiences to improve and expand to new categories, potentially increasing eBay’s share of listings and reinforcing category growth dynamics.
The research firm highlighted collectible cards as an example where eBay appears to have reached "escape velocity," establishing itself as the clear market leader in this category.
With eBay’s guidance that Focus categories could represent half of its GMV over time, Citizens believes the company’s growth prospects are more sustainable than current investor expectations, which anticipate only low-single-digit GMV growth for 2026.
In other recent news, eBay is preparing for its third-quarter earnings report, with analysts from Barclays maintaining an "overweight" rating and setting a price target of $92. TD Cowen has raised its price target for eBay to $84, expecting a slight acceleration in Gross Merchandise Volume (GMV) for the third quarter of 2025, projecting a 6.3% year-over-year growth. Bernstein has also increased its price target to $95, citing the strength of trading cards, a category that saw a 10% year-over-year growth in the second quarter. Mizuho has initiated coverage on eBay with a Neutral rating and a price target of $98, noting the company’s impressive execution in transforming GMV growth from negative 1% in 2023 to positive 6% in the most recent quarter. Meanwhile, Cantor Fitzgerald has reiterated its Neutral rating with an unchanged price target of $85, as eBay navigates shifts in its China-to-U.S. shipping business, which accounts for approximately 5% of its GMV. These developments reflect varied perspectives from financial institutions as they assess eBay’s performance and future potential.
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