On Wednesday, eBay Inc. (NASDAQ:EBAY) saw its price target increased by an analyst at Jefferies from $44.00 to $48.00. The analyst maintained a Hold rating on the stock. This adjustment comes after eBay reported financial results that surpassed expectations and provided a forecast that indicated a shift towards prioritizing total returns, encompassing both earnings per share growth and dividend yield.
The online marketplace has ended a period of over two years of declining Gross Merchandise Volume (GMV) with a recent report showing flat GMV year-over-year. The analyst highlighted this as a positive sign, noting that eBay's full-year 2024 guidance includes plans for margin expansion and enhanced cash returns to shareholders.
The analyst's optimism is tempered by the need to see more consistent evidence of eBay's ability to achieve continuous positive growth in GMV. However, the recent quarterly performance was seen as a step in the right direction. The analyst's updated estimates and price target reflect this cautious optimism.
eBay's focus on total returns is a strategic move that appears to be resonating with investors. The company's guidance suggests that it is not only aiming for growth in profitability but also looking to reward shareholders through dividends.
The raise in the price target to $48.00 from $44.00 by Jefferies follows eBay's demonstration of early progress in reversing past declines in GMV. As the company continues to navigate the competitive e-commerce landscape, market watchers will be looking for sustained positive trends in its performance metrics.
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