eBay "sector perform," target price raised

18.10.07 - RBC Capital Markets

NEW YORK, October 18 (newratings.com) - Analysts at RBC Capital Markets maintain their "sector perform" rating on eBay Inc (EBAY), while raising their estimates for the company. The target price has been raised from $40 to $44.

In a research note published this morning, the analysts mention that eBay?s 3Q07 results indicating improved stability at the company and acceleration in PayPal growth. eBay has raised its EPS and revenue guidance for 4Q07 to $0.39-$0.41 and $2.1-$2.15 billion, respectively. The upward revision in the target price reflects a shift in the base year, the analysts add. The pro-forma EPS estimate for 2007 has been raised from $1.39 to $1.48.