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Monday, shares of eBay (NASDAQ:EBAY), currently trading at $69.99 and near its 52-week high of $71.52, saw their price target increased by UBS analysts, with a new target set at $72, up from the previous $66, while the firm kept a Neutral rating on the stock. The revision comes amid adjustments in the company’s international Gross Merchandise Volume (GMV) estimates, which have been affected by foreign exchange (FX) rates. According to InvestingPro data, eBay has demonstrated impressive strength with a 60.73% return over the past year.
Stephen Ju of UBS noted that the changes in the international GMV forecasts were primarily due to FX impacts, but this was partially offset by an anticipated rise in take rates starting from the second quarter of 2025. The analyst’s comments indicate a recalibration of eBay’s revenue projections in light of these factors. The company maintains impressive gross profit margins of 72.02%, as revealed by InvestingPro analysis, which shows 8 additional key insights available to subscribers.
In addition to adjusting the GMV estimates, UBS has updated its valuation time frame for eBay, now looking ahead to the twelve months ending in the fourth quarter of 2026 (4Q26E). This forward-looking approach extends beyond the previous valuation period that was set to end between the fourth quarter of 2025 and the third quarter of 2026 (4Q25E-3Q26E).
The price target increase to $72 reflects these updated valuation parameters and the subsequent recalibration of eBay’s expected financial performance. Despite the higher price target, UBS has chosen to maintain its Neutral rating on eBay stock, suggesting that the analysts see the company as fairly valued at the current levels.
This update from UBS provides investors with a revised expectation for eBay’s stock value, considering both the challenges and potential revenue adjustments in the coming periods. As the market processes this information, eBay’s stock performance will continue to be a point of interest for shareholders and potential investors alike.
In other recent news, eBay has completed its acquisition of Caramel, a digital platform for automotive transactions. This strategic move aims to enhance eBay’s vehicle sales capabilities by integrating Caramel’s technology, which simplifies car sales processes like documentation and ownership transfer. The acquisition is part of eBay’s broader strategy to provide secure and streamlined automotive transactions on its platform. Additionally, eBay has partnered with OpenAI to advance its artificial intelligence strategy. This collaboration focuses on utilizing AI to improve online shopping experiences through the AI agent, Operator, which functions as a virtual assistant for online tasks.
Meanwhile, TD Cowen has maintained a Hold rating on eBay shares while raising the price target to $60 from $54. The decision is based on expectations of a slight revenue increase and adjusted operating income growth, supported by strategic initiatives and favorable foreign exchange rates. eBay’s Gross Merchandise Volume is projected to grow by 3.4% year-over-year in the fourth quarter of 2024, surpassing management’s guidance midpoint. However, JMP Securities maintains a Market Perform rating on eBay, indicating that more significant improvements are necessary before adopting a more favorable stance. These developments reflect eBay’s ongoing efforts to enhance its financial performance and technological capabilities.
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