eBay "sector perform," target price reduced

16.08.06 - RBC Capital Markets

NEW YORK, August 16 (newratings.com) - Analyst Jordan Rohan of RBC Capital Markets maintains his "sector perform" rating on eBay Inc (EBAY), while reducing his estimates for the company. The target price has been reduced from $32 to $31.

In a research note published yesterday, the analyst mentions that the company continues to face competition in main growth areas like Skype, PayPal and Korea, and may need to revise its strategy. The analyst says, however, that eBay?s operating margins are unlikely to improve in 2007. The company is facing increased risk of losing traction in the Asian markets, RBC Capital Markets adds. The EPS estimate for 2007 has been reduced from $1.20 to $1.18.