Baird has reiterated its positive stance on eBay Inc. (NASDAQ: NASDAQ:EBAY), maintaining an Outperform rating and a price target of $62.00.
The firm's analysis of eBay's performance in August indicates that the third quarter is progressing as expected. Transaction tracking on eBay.com for the month reveals that the trends align with historical averages.
The observation comes despite some weaker signals from broader e-commerce assessments during the same period.
According to the firm, eBay's stock has seen significant growth year-to-date, outpacing the broader market with a 46% increase compared to the S&P 500's 19% rise.
The firm suggests that to continue this momentum and achieve further valuation growth, eBay will need to demonstrate year-over-year Gross Merchandise Volume (GMV) growth in the fourth quarter.
The firm's tracking data, which specifically focuses on the U.S. market, implies that eBay is managing to stay on course with its quarterly targets. This is seen as a positive indicator, especially considering the soft spots identified in the e-commerce sector during August.
The firm remains bullish on eBay's stock, describing it as an attractive and top-value pick for 2024. The maintained price target of $62.00 reflects this optimism, suggesting that Baird sees potential for eBay shares to continue their upward trajectory in the near term.
The assessment is based on eBay's ability to maintain consistent performance and potentially expand its market valuation through growth in GMV in the upcoming quarter.
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