eBay initiated with "buy"

27.10.06 - Banc of America

NEW YORK, October 27 (newratings.com) - Analysts at Banc of America Securities initiate coverage of eBay Inc (EBAY) with a "buy" rating. The target price is set to $40.

In a research note published yesterday, the analysts mention that the company is likely to witness challenges in the near term on account of its initiatives to expand the addressable market as well as online eCommerce dynamics. The analysts say, however, that the segments as well as its related formats would enable eBay to diversify new monetization models and revenue streams. Banc of America Securities expresses its optimism regarding the growth prospects of the company's Payment business.