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Investing.com - Cantor Fitzgerald has reiterated its Neutral rating on eBay (NASDAQ:EBAY), currently trading at $94.64 with a market capitalization of $43.14 billion, with an unchanged price target of $85.00, according to a recent analyst note. InvestingPro data shows the stock is currently trading near its Fair Value.
The firm’s assessment comes as eBay navigates changing dynamics in its China-to-U.S. shipping business, which represented approximately 5% of the company’s Gross Merchandise Value (GMV) in the first quarter of 2025, while China overall accounted for about 10% of GMV. The company maintains impressive gross profit margins of 71.88% and generates annual revenue of $10.47 billion, according to InvestingPro data.
Cantor Fitzgerald noted that 75% of eBay’s China-to-U.S. business was already forward deployed to end-markets, meaning these transactions were already subject to tariffs and remain unaffected by recent de minimis rule changes.
Of the remaining 25% of China-to-U.S. shipments, approximately half utilized eBay’s SpeedPAK service, which handles tariff and customs complexities for sellers, providing some insulation from regulatory changes.
The company experienced some disruption to direct shipments from China to the U.S. following the de minimis rule change implemented in May, but these challenges were offset by an increase in Average Selling Prices (ASPs), according to the analyst’s report.
In other recent news, eBay has reported strong second-quarter results, prompting multiple firms to raise their price targets for the company. CFRA increased its target to $107, highlighting a significant acceleration in U.S. gross merchandise volume (GMV) and robust consumer demand across key categories. Similarly, Benchmark raised its price target to $100, noting that eBay exceeded second-quarter expectations and provided a positive outlook for the third quarter. BofA Securities also adjusted its target to $101, citing a 7% year-over-year growth in U.S. GMV and a slight increase in e-commerce market share.
JMP Securities maintained a Market Perform rating, pointing out specific growth areas benefiting eBay’s business performance. In addition to financial developments, eBay introduced a new policy offering free returns for vehicle parts and accessories, addressing a common concern for online automotive purchases. This new return policy applies to most eligible items within 30 days of delivery. These recent developments reflect eBay’s ongoing efforts to enhance its platform and strengthen its market position.
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