Stifel lowers eBay stock price target to $88 on growth concerns

Investing.com - Stifel reduced its price target on eBay (NASDAQ:EBAY) to $88.00 from $89.00 on Thursday, while maintaining a Hold rating following the company’s third-quarter earnings report. The new target sits below the current stock price of $99.54, which is trading just 1% below its 52-week high of $101.15. According to InvestingPro data, eBay appears to be trading above its Fair Value estimate.

The e-commerce platform delivered strong third-quarter results, reporting 8% year-over-year GMV growth to $20 billion and revenue of $2.8 billion, exceeding market expectations. The performance was driven by momentum in focus categories, particularly collectibles, which grew 15% compared to the same period last year. This continues eBay’s positive trajectory, with InvestingPro data showing impressive 62.56% year-to-date returns and 61.47% one-year price total return.

eBay highlighted several strategic initiatives gaining traction, including accelerated adoption of eBay Live, successful consumer-to-consumer program changes in the United Kingdom, and deeper artificial intelligence integration for search and seller tools. These initiatives complement the company’s strong financial fundamentals, with InvestingPro Tips noting that management has been aggressively buying back shares and the company maintains impressive gross profit margins of 71.88%.

Despite the strong quarterly performance, Stifel’s reduced price target reflects concerns about eBay’s fourth-quarter guidance, which projects GMV growth decelerating to 4-6% year-over-year. The company cited tough comparisons and the full impact of de minimis changes as factors behind the slowdown.

eBay’s early 2026 outlook identified additional headwinds to GMV growth, including tough comparisons in trading cards and coins/bullion categories creating a 200 basis point drag, while de minimis changes are expected to impact growth by 100 basis points.

In other recent news, eBay reported its third-quarter earnings for 2025, surpassing analysts’ expectations with a non-GAAP earnings per share (EPS) of $1.36, compared to the forecasted $1.33. Revenue also exceeded projections, reaching $2.82 billion against the anticipated $2.73 billion. The company’s Gross Merchandise Volume (GMV) was nearly 3% above the high end of guidance, with Focus Category growth accelerating to 15% year-over-year. Additionally, eBay’s first-party advertising business showed strong performance, with a 23% year-over-year growth excluding foreign exchange effects.

In response to these results, Citizens reiterated its Market Outperform rating and $115.00 price target on eBay. Goldman Sachs also raised its price target on eBay to $78.00 from $72.00, maintaining a Sell rating, noting the company’s earnings exceeded expectations. Meanwhile, Wells Fargo increased its price target to $96.00 from $89.00, citing strategic initiatives like eBay Live and consumer-to-consumer selling as key factors. These developments highlight the company’s ongoing efforts to enhance its market position and financial performance.

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