eBay "outperform," target price reduced

25.01.08 - Credit Suisse

NEW YORK, January 25 (newratings.com) - Analyst H Terry of Credit Suisse maintains his "outperform" rating on eBay Inc (EBAY), while reducing his estimates for the company. The target price has been reduced from $46 to $41.

In a research note published yesterday, the analyst mentions that the company has reported its 4Q revenues and non-GAAP EPS ahead of the estimates. eBay has issued its initial revenue and non-GAAP EPS guidance for 2008 at $8.50-$8.75 billion and $1.63-$1.67, respectively, based on cautious consumer expectations. The company expects to post 2008 non-GAAP operating margins of about 32%, as compared to 33% in 2007, on account of significant growth of the lower margin businesses, Credit Suisse adds. The EPS estimate for 2008 has been reduced from $1.38 to $1.31.