eBay "neutral," target price raised - update

19.07.07 - UBS

NEW YORK, July 19 (newratings.com) - Analysts at UBS maintain their "neutral" rating on eBay Inc (EBAY), while raising their estimates for the company. The 12-month target price has been raised from $37 to $38.

In a research note published this morning, the analysts mention that the company has posted its 2Q net revenues and adjusted EPS ahead of the estimates and the consensus. eBay raised its pro forma EPS guidance for 2007 from $1.30-1.34 to $1.34-1.38 and its revenue guidance for the year from $7.2-7.45 billion to $7.3-7.45 billion. Although the headline metrics for 2Q were robust, there are continued concerns surrounding core marketplace growth, the analysts add. The EPS estimates for 2007 and 2008 have been raised from $1.35 to $1.37 and from $1.54 to $1.56, respectively.