In a report released today, Nikhil Devnani from Bernstein downgraded eBay (EBAY – Research Report) to a Hold, with a price target of $65.00.
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Nikhil Devnani has given his Hold rating due to a combination of factors affecting eBay’s current market position. The downgrade from Outperform to Market-Perform reflects a shift in the eCommerce environment, with softened data and tariff concerns impacting growth projections. Despite eBay’s relative strength compared to broader market declines, uncertainties around US GMV and EBIT pressures remain.
eBay’s strategic positioning, with limited China exposure and a focus on secondhand and refurbished goods, has provided some resilience. However, the potential for disruptions in China-sourced inventory and the overall discretionary nature of eBay’s category mix introduce risks. Given these complexities and the lack of clear visibility into the near-term outlook, Devnani opts for a cautious ‘wait and see’ approach, resulting in the Hold rating.
In another report released on April 10, Jefferies also maintained a Hold rating on the stock with a $48.00 price target.