eBay "sector perform," target price reduced - update

13.07.06 - RBC Capital Markets

NEW YORK, July 13 (newratings.com) - Analyst Jordan Rohan of RBC Capital Markets maintains his "sector perform" rating on eBay (EBAY), while reducing his estimates for the company. The target price has been reduced from $42 to $32.

In a research note published yesterday, the analyst mentions that the launch of Google Checkout and a change in eBay?s management team have significantly affected investor sentiments. eBay is likely to post its 2Q results in-line with expectations and announce weak guidance for FY07, the analyst says. The company has shifted its focus from growth in the core US listings and now aims at maximizing total revenue per visitor going forward, RBC Capital Markets adds. The EPS estimate for 2007 has been reduced from $1.28 to $1.20.