Stifel has cut eBay Inc.’s
EBAY,
price target to $60 from $62 amid currency pressures and headwinds in the online marketplace’s international business. “We are leaving our 2Q estimates relatively unchanged, however, due to devaluations of international currencies our estimates decline slightly,” wrote Stifel analyst Scott Devitt, in a note. “Our 2Q GMV estimate declines to $18,352mm (-18.8% y/y) and our revenue estimate declines to $2,382mm (-10.7% y/y), both remain in line with consensus expectations and guidance.” Stifel expects eBay’s results to benefit from scaling of the company’s focus categories and conversion of high value buyers, offset by macroeconomic headwinds. “We are lowering our 2H:22 estimates for eBay’s international business on expectations for EU eCommerce to continue to face headwinds throughout the year, specifically FX,” Devitt wrote. Stifel maintained its eBay buy rating. eBay’s stock was recently downgraded to neutral from buy at UBS, citing concerns about how the e-commerce sector could fare in a downturn. Shares of eBay rose 0.2% to $42.11 in premarket trading. The company’s stock has fallen 36.8% this year, compared to the S&P 500’s
SPX,
20.5% decline. eBay shares ended Thursday’s session down 1.1% at $42.03, outpacing the S&P 500’s 0.3% decline.
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