Deutsche Bank analyst Lee Horowitz initiated coverage of eBay (ticker: EBAY) with a Buy rating and $64 price target. “[W]e are bullish on eBay at current levels and believe that in a more ‘value-oriented market’ the risk/reward for eBay is compelling,” Horowitz wrote in a research report.
“We believe that the market is under-appreciating eBay’s positioning within the secular growth trends associated around re-commerce and, more importantly, the impressive executional focus that has followed CEO Jamie lannone’s arrival,” he wrote.
EBay stock is up 3.7% Tuesday to $53.97. The stock has fallen 19% so far this year, about even with the 18% slide in the
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In February, eBay had provided disappointing financial guidance for 2022 that fell short of analysts’ expectations, but Horowitz wrote that the outlook is “extremely conservative,” and now only reflects a worst-case scenario.
“We believe it is more likely that second-half 2022 growth comes in ahead of expectations, putting eBay on more-stable footing to drive sustainable mid-single-digit volume growth in 2023, as guided by the company,” Horowitz wrote.
EBay Stock Has a New Bull Who Sees a Strong Second Half
eBay’s German headquarters
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The market seems to be underestimating e-commerce giant
eBay
,
according to one analyst.
Deutsche Bank analyst Lee Horowitz initiated coverage of eBay (ticker: EBAY) with a Buy rating and $64 price target. “[W]e are bullish on eBay at current levels and believe that in a more ‘value-oriented market’ the risk/reward for eBay is compelling,” Horowitz wrote in a research report.
“We believe that the market is under-appreciating eBay’s positioning within the secular growth trends associated around re-commerce and, more importantly, the impressive executional focus that has followed CEO Jamie lannone’s arrival,” he wrote.
EBay stock is up 3.7% Tuesday to $53.97. The stock has fallen 19% so far this year, about even with the 18% slide in the
Nasdaq Composite index
.
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A morning briefing on what you need to know in the day ahead, including exclusive commentary from Barron’s and MarketWatch writers.
In February, eBay had provided disappointing financial guidance for 2022 that fell short of analysts’ expectations, but Horowitz wrote that the outlook is “extremely conservative,” and now only reflects a worst-case scenario.
“We believe it is more likely that second-half 2022 growth comes in ahead of expectations, putting eBay on more-stable footing to drive sustainable mid-single-digit volume growth in 2023, as guided by the company,” Horowitz wrote.
Write to Logan Moore at [email protected].
Source: https://www.barrons.com/articles/ebay-stock-bull-51647359716?siteid=yhoof2&yptr=yahoo