eBay "equal-weight," target price reduced

25.01.08 - Lehman Brothers

NEW YORK, January 25 (newratings.com) - Analysts at Lehman Brothers maintain their "equal weight" rating on eBay Inc (EBAY). The target price has been reduced from $33 to $30.

In a research note published yesterday, the analysts mention that the company has reported its 4Q07 revenues and EPS ahead of the consensus and at the high end of its guidance. The analysts add, however, that eBay?s organic revenue growth has slowed down to just 18%. The company has also guided to a slowdown in its 2008 revenue growth to 11%-12%. Although the company plans to make significant modifications to its core auction platform, the actual impact of these changes would be clear only after a few quarters, Lehman Brothers says.