eBay downgraded to ?sector perform? - update

20.04.06 - RBC Capital Markets

NEW YORK, April 20 (newratings.com) ? Analyst Jordan Rohan of RBC Capital Markets downgrades eBay Inc (EBAY) from "outperform" to "sector perform," while reducing his estimates for the company. The target price has been reduced from $50 to $42.

In a research note published this morning, the analyst mentions that the company has reported its 1Q06 results broadly in-line with expectations. eBay?s performance in terms of ASPs of goods sold were disappointing, however, for the second consecutive quarter in 1Q06, the analyst says. The company is witnessing stiff competition from Google in the classifieds and payment areas, RBC Capital Markets adds. The EPS estimates for 2006 and 2007 have been reduced from $1.06 to $0.99 and from $1.39 to $1.28, respectively.