eBay "overweight," estimates reduced

21.07.06 - Prudential Financial

NEW YORK, July 21 (newratings.com) - Analyst Mark J Rowen of Prudential Financial maintains his "overweight" rating on eBay Inc (EBAY), while reducing his estimates for the company. The target price is set to $40.

In a research note published yesterday, the analyst mentions that the company has reported its 2Q pro forma EPS in-line with the consensus and ahead of the estimates. eBay has reported its 2Q revenues in-line with the consensus and the estimates. The company has announced a fee hike for its store inventory listings to enable the rebalancing of its mix towards core listings. The EPS estimates for 2006 and 2007 have been reduced from $0.84 to $0.83 and from $1.11 to $1.09, respectively.