eBay’s Strong Q2 Performance and Cautious Q3 Outlook Justify Hold Rating

Justin Post, an analyst from Bank of America Securities, reiterated the Hold rating on eBay. The associated price target was raised to $82.00.

Justin Post has given his Hold rating due to a combination of factors including eBay’s anticipated strong performance in the second quarter driven by robust online sales and diminishing take rate challenges. Despite these positive indicators, there is a cautious outlook for the third quarter, with expectations of guidance that may not significantly exceed current market estimates.
While eBay’s stock has shown a notable increase year-to-date, outperforming the Nasdaq, there are concerns about the sustainability of this growth given the elevated expectations and the potential for a slowdown in further acceleration in the U.S. market. Additionally, the stock’s valuation, although raised, remains slightly discounted compared to retail peers, reflecting a more conservative growth outlook. These elements collectively contribute to the Hold rating as the market awaits further clarity on eBay’s future performance.

In another report released on July 22, TD Cowen also maintained a Hold rating on the stock with a $72.00 price target.