eBay "sell," target price raised

19.04.07 - Cantor Fitzgerald

NEW YORK, April 19 (newratings.com) - Analyst Derek Brown of Cantor Fitzgerald maintains his "sell" rating on eBay Inc (EBAY), while raising his estimates for the company. The target price has been raised from $29 to $30.

In a research note published this morning, the analyst mentions that the company has reported its 1Q07 revenues and pro forma EPS ahead of the estimates. The fundamentals of eBay?s core Marketplace franchise deteriorated significantly, with FX-neutral organic GMV growing by just 9% y/y in the quarter, the analyst says. The company has raised its guidance for 2007 primarily on account of non-core factors, such as currency effects and tax rate. The EPS estimates for 2007 and 2008 have been raised from $1.28 to $1.35 and from $1.48 to $1.53, respectively.