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Investing.com - Wells Fargo raised its price target on eBay (NASDAQ:EBAY) to $96.00 from $89.00 on Thursday, while maintaining an Equal Weight rating on the e-commerce company’s stock. eBay shares are currently trading at $99.54, near their 52-week high of $101.15, after delivering an impressive 62.56% return year-to-date according to InvestingPro data.
The investment firm cited eBay’s strategic initiatives, including eBay Live, consumer-to-consumer (C2C) selling, and vehicles, as key factors that could help the company overcome tougher comparisons starting in the second quarter of 2026. These initiatives complement eBay’s strong financial foundation, which includes impressive gross profit margins of 71.88% in the last twelve months.
Wells Fargo analysts noted that investors are closely monitoring potential reversion in collectible categories but view new initiatives as potential offsets, with C2C investments, including the recent Tise acquisition, as the most likely near-term contributor. InvestingPro data shows management has been aggressively buying back shares, demonstrating confidence in the company’s strategic direction. Access the comprehensive Pro Research Report for eBay to discover all 14 ProTips and detailed financial analysis.
The firm raised its 2026 and 2027 Gross Merchandise Volume (GMV) estimates by 1% and 2% respectively, following eBay’s third-quarter performance and fourth-quarter guidance that exceeded expectations.
The new $96 price target represents an increase from the previous $89 and is based on a multiple of 20 times Wells Fargo’s 2027 GAAP earnings per share estimate of $4.82, up from the previous multiple of 18 times.
In other recent news, eBay reported its third-quarter earnings for 2025, exceeding analysts’ expectations. The company achieved a non-GAAP earnings per share (EPS) of $1.36, surpassing the forecasted $1.33, and reported revenue of $2.82 billion, which was higher than the anticipated $2.73 billion. eBay’s Gross Merchandise Volume (GMV) was nearly 3% above the high end of guidance, with notable growth in its Focus Category and first-party advertising business. Citizens has reiterated its Market Outperform rating for eBay, setting a price target of $115.00 following these mixed results. Meanwhile, Goldman Sachs raised its price target on eBay to $78.00 from $72.00, despite maintaining a Sell rating on the stock. The price target adjustments reflect eBay’s performance, which exceeded both Goldman Sachs and Street expectations in terms of GMV, revenue, and non-GAAP EPS results. These developments underscore the company’s strong financial performance in the recent quarter.
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