eBay "sector perform," target price raised

15.04.08 - RBC Capital Markets

NEW YORK, April 15 (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 $36 to $40.

In a research note published this morning, the analysts mention that the company?s 1Q08 results are expected to exhibit stabilization in conversion rates. While ASPs declined at eBay?s core segment, conversion rates improved on account of the company?s shift to Best Match, the analysts add. Although conversion rates deteriorated at the SIF segment, its impact was offset by a rise in ASPs at the division, RBC Capital Markets says. The EPS estimates for 2008 and 2009 have been raised from $1.64 to $1.69 and from $1.91 to $2.00, respectively.