Susquehanna lifts eBay stock price target to $65 from $60

On Monday, Susquehanna’s analysts announced an increase in the price target for eBay stock (NASDAQ:EBAY), raising it to $65.00, up from the previous target of $60.00. The firm has chosen to maintain a Neutral rating on the shares despite this adjustment. According to InvestingPro data, eBay appears undervalued compared to its Fair Value, with 10 analysts recently revising their earnings estimates upward for the upcoming period.

The revision follows eBay’s fourth-quarter earnings report, which exceeded expectations, with impressive gross profit margins of 72% and annual revenue reaching $10.28 billion. However, the outlook for the first quarter was somewhat below projections, attributed to ongoing macroeconomic pressures in certain markets, currency exchange fluctuations, and the potential effects of tariffs.

Susquehanna’s analysts acknowledged the positive aspects of eBay’s revised strategy but expressed a belief that it will require time to fully materialize. This cautious stance underpins their decision to uphold the Neutral rating on the stock. For deeper insights into eBay’s financial health and growth potential, InvestingPro subscribers can access comprehensive analysis and additional ProTips.

eBay’s recent performance has been under scrutiny, with the company navigating through various global economic challenges. While the stock has delivered a strong 37% return over the past year and maintains a healthy dividend growth rate of 16%, the analysts’ commentary suggests that while eBay’s strategic changes are promising, the anticipated benefits are not immediate.

The updated price target reflects a modest optimism about eBay’s future financial performance, balancing the company’s strong fourth-quarter results with the tempered expectations for the upcoming quarter.

Investors and market watchers will be keeping an eye on eBay’s progress as it implements its new strategy in the face of the mentioned economic headwinds. The company’s ability to adapt and thrive amid these conditions will be critical to its success and the future movement of its stock price.

In other recent news, eBay reported a fourth-quarter earnings per share (EPS) of $1.25, a 16% increase year-over-year, surpassing expectations by $0.05. The company’s revenue for the quarter was $2,579 million, representing a modest 1% increase year-over-year, but it fell $3 million short of the consensus estimate. Despite the revenue miss, eBay’s Focus Categories grew 6% faster than its core business, with Trading Cards and Parts & Accessories showing significant strength. Analysts from CFRA, Benchmark, and BMO Capital Markets have maintained positive ratings on eBay, with price targets ranging from $63 to $76, reflecting confidence in the company’s strategies and future growth prospects.

Evercore ISI maintained an In Line rating on eBay but modestly increased its price target to $63, citing a "Modest Beat & Lower Q4 EPS print." Stifel adjusted its price target to $63, maintaining a Hold rating due to challenges in international markets and foreign exchange headwinds. eBay’s first-quarter outlook was described as conservative, with potential tariff impacts and a softer macroeconomic environment in the U.K. and Germany. However, analysts noted potential growth from initiatives like Caramel and Facebook (NASDAQ:META) Marketplace, alongside a $3 billion buyback program, which may drive future performance. These developments indicate mixed sentiments among analysts, with some expressing caution due to economic uncertainties while others highlight growth opportunities in key focus areas.

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