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On Thursday, Evercore ISI maintained its In Line rating on eBay (NASDAQ:EBAY) stock and modestly raised the price target from $62.00 to $63.00. The adjustment comes after eBay’s recent earnings report, which Evercore ISI analyst Mark Mahaney described as a "Modest Beat & Lower Q4 EPS print."
In the fourth quarter, eBay’s results were fundamentally positive, with the first-quarter outlook indicating continued positive momentum. The company’s robust performance is supported by its impressive 72.02% gross profit margin and strong financial health metrics, as reported by InvestingPro. This is particularly evident in eBay’s Focus Categories, despite facing headwinds such as tariffs, currency exchange fluctuations, and near-term revenue pressures from the UK Consumer-to-Consumer (C2C) initiative. Additionally, the company’s results were slightly impacted by the comparison to last year’s leap day.
Evercore ISI’s analysis also took into account eBay’s forward-looking statements. The company provided a fiscal year 2025 outlook that aligns closely with the preliminary commentary from the third-quarter earnings report. eBay anticipates low single-digit percentage growth in Gross Merchandise Volume (GMV) and Revenue, alongside high double-digit percentage growth in non-GAAP Earnings Per Share (EPS).
The slight increase in eBay’s price target reflects the analyst’s response to the company’s recent performance and future expectations. Despite the modest adjustment, the In Line rating suggests that Evercore ISI believes eBay’s stock is currently valued appropriately in the market, given the mix of challenges and growth opportunities ahead.
In other recent news, eBay reported a fourth-quarter earnings per share (EPS) of $1.25, surpassing expectations by $0.05 and marking a 16% year-over-year increase. However, the company’s revenue for the quarter was $2,579 million, a modest 1% increase from the previous year, and fell slightly short of the consensus estimate. Analysts have expressed varied opinions on eBay’s future, with CFRA maintaining a Buy rating and a $76 price target, while Benchmark raised its target to $75, citing eBay’s performance against key performance indicators. Conversely, Stifel adjusted its price target to $63, maintaining a Hold rating due to concerns about international market challenges. BMO Capital Markets increased its price target to $63, noting strong growth in eBay’s Focus Categories, such as Trading Cards and Parts & Accessories. Citi analysts also retained a Buy rating with an $80 price target, highlighting eBay’s product innovation and strategic acquisitions. Despite some concerns about the first-quarter outlook, analysts recognize eBay’s efforts in expanding its Focus Categories and partnerships, such as with Facebook (NASDAQ:META) Marketplace. These developments reflect eBay’s ongoing strategies to navigate market conditions and drive growth.
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