eBay stock price target raised to $107 from $87 at CFRA on strong Q2 results

Published 31/07/2025, 21:04
© Reuters.

Investing.com - CFRA has raised its price target on eBay (NASDAQ:EBAY) to $107.00 from $87.00 while maintaining a Buy rating, citing the company’s strong second-quarter performance. According to InvestingPro data, the stock is currently trading near its 52-week high, with analyst targets ranging from $50 to $102. Based on InvestingPro’s Fair Value analysis, the stock appears to be slightly overvalued at current levels.

The research firm highlighted a significant 6-point acceleration in U.S. gross merchandise volume (GMV), indicating healthy consumer demand across eBay’s platform. Growth was particularly strong in the company’s Focus Categories, including collectibles, parts and accessories, luxury goods, refurbished items, and apparel. The company maintains impressive gross profit margins of 71.85%, demonstrating strong pricing power in these focus categories.

CFRA noted that eBay’s robust revenue performance is driving operating leverage, further enhancing the company’s already strong margin profile. The firm now forecasts operating margins to expand by 40 basis points in 2025 to 28.5%, followed by an additional 60 basis points in 2026 to 29.1%.

Based on these positive trends, CFRA has increased its 2026 earnings per share estimate to $6.29 from $6.06, while slightly raising its 2025 EPS projection to $5.59 from $5.58. The firm applied a 17x price-to-earnings multiple to its 2026 EPS estimate, up from its previous 16x multiple.

CFRA expects eBay’s earnings per share to grow 15% in 2025 and 13% in 2026, supported by ongoing share buybacks and operational improvements.

In other recent news, eBay has reported strong second-quarter earnings, surpassing both its own guidance and Wall Street expectations. The company demonstrated a 4% year-over-year growth in gross merchandise volume (GMV), outperforming its previous guidance. Analysts from several firms have responded positively, with Benchmark raising its price target to $100 and maintaining a Buy rating, highlighting eBay’s accelerating GMV growth for the third quarter. Cantor Fitzgerald also increased its price target to $85, citing the company’s strong GMV and earnings per share performance. Needham echoed this sentiment, raising its price target to $95 due to eBay’s better-than-expected quarterly performance.

Stifel adjusted its price target to $75, acknowledging the 10% year-over-year growth in focus category GMV and resilient U.S. consumer spending, while maintaining a Hold rating. Despite maintaining a Sell rating, Goldman Sachs raised its price target to $72, noting the company’s robust earnings, GMV, revenue, and non-GAAP EBIT margin. These developments reflect eBay’s ability to exceed market expectations and suggest a positive outlook from analysts.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.