eBay "buy," target price reduced

20.07.06 - Stifel Nicolaus

NEW YORK, July 20 (newratings.com) - Analysts at Stifel Nicolaus & Company maintain their "buy" rating on eBay Inc (EBAY), while reducing their estimates for the company. The target price has been reduced from $39 to $37.

In a research note published this morning, the analysts mention that the company has posted its Q2 net revenues short of the estimates. eBay has initiated a fee hike at its store listings, which is expected to have a positive impact on the velocity of the marketplace, the analysts add. The company?s board has authorised a share buyback programme worth $2 billion of common stock for the forthcoming two years. The EPS estimates for FY06 and FY07 have been reduced from $1.02 to $1.00 and from $1.27 to $1.23, respectively.