On Thursday, Piper Sandler showed optimism for eBay (NASDAQ:EBAY)'s future by increasing its stock price target on the company's shares to $67 from $64, while maintaining an Overweight rating. The e-commerce giant, which trades on the NASDAQ under the ticker EBAY, has been under pressure after market, but the firm believes eBay is largely on track.
The analyst from Piper Sandler highlighted eBay's Gross Merchandise Volume (GMV), which grew again this quarter and is expected to continue its positive trajectory into 2025. The company's capital return program is also proceeding as planned, with $2.25 billion repurchased year-to-date.
eBay management has introduced a consumer-to-consumer (C2C) product initiative in the United Kingdom, which is anticipated to become a significant revenue driver by the second half of 2025. This initiative, along with the GMV growth, contributed to the analyst's decision to raise the price target.
The company's GMV estimates have been revised upward following the latest earnings report. The new price target of $67 reflects the analyst's confidence in eBay's ongoing strategies and potential for future growth. The Overweight rating reiteration signals the analyst's belief that eBay's stock will outperform the average return of the stocks the analyst covers.
InvestingPro Insights
eBay's recent performance aligns with Piper Sandler's optimistic outlook. According to InvestingPro data, the company's revenue growth stands at 2.52% over the last twelve months, with a quarterly growth of 1.26% in Q2 2024. This supports the analyst's positive view on eBay's Gross Merchandise Volume (GMV) growth.
InvestingPro Tips highlight that eBay has been aggressively buying back shares, which corroborates the analyst's mention of the company's capital return program. Additionally, eBay boasts impressive gross profit margins, with InvestingPro data showing a gross profit margin of 72.03% for the last twelve months.
The company's P/E ratio of 11.97 suggests it's trading at a relatively low valuation compared to its earnings, which could be attractive for investors considering the analyst's increased price target. eBay's dividend yield of 1.72% and a dividend growth of 8.0% over the last twelve months further enhance its appeal to investors.
These insights are just a sample of the valuable information available on InvestingPro. The platform offers 10 additional tips for eBay, providing a comprehensive analysis for investors looking to make informed decisions.
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