eBay "buy," target price reduced

04.02.08 - Stifel Nicolaus

NEW YORK, February 4 (newratings.com) - Analyst Scott Devitt of Stifel Nicolaus & Company maintains his "buy" rating on eBay Inc (EBAY). The target price has been reduced from $39 to $37.

In a research note published this morning, the analyst mentions that the eCommerce Forum of 2008 included several adjustments to the eBay marketplace. Revisions made to eBay?s fee structure, including customer experience discounts and free gallery, are expected to result in a decline in prices for nearly 70% of sellers, the analyst adds. Going ahead, eBay would witness challenges in attaining the desired outcome from its recently revised incentive structure, according to Stifel Nicolaus & Company.