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eBay Stock Drops on Guidance: What Wall Street Analysts Are Saying

Analysts from Wedbush, Jefferies, Credit Suisse and KeyBanc weigh in on the e-commerce company's third quarter earnings results and holiday season forecast.
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Shares of eBay  (EBAY) - Get Free Report were falling on Thursday following the company's third-quarter earnings results as investors reacted to the company's weak holiday quarter guidance.

At last check, shares of eBay were down 7.87% at $71.84. 

Here's what Wall Street analysts from Wedbush, Jefferies, Credit Suisse and KeyBanc had to say about the company. 

"eBay continues to see positive development in its focus categories including watches, sneakers, handbags, and trading cards with the "new playbook" on track to be applied to 20% of GMV by year-end," analyst Ygal Arounian said. 

However, the firm maintained a neutral rating and $74 price target, as while management is executing on its growth initiatives, "...GMV trends remain under pressure and are balanced by buybacks and investments."

Analysts at Jefferies maintained a hold rating while lowering their price target to $80 from $83 per share. 

"4Q GMV guidance for a low-teen y/y decline is disappointing, given it represents a sequential deceleration despite an easier comp and an expectation that EBAY would benefit from disruptions at other retailers this holiday season. We also estimate 2022 GMV could fall ~10% below consensus if EBAY's historical sequential cadence holds," analyst John Colantuoni said. 

Credit Suisse maintained its outperform rating while raising eBay's price target to $82 from $81 per share. 

"Our target price increases to $82 vs $81 prior and we maintain our Outperform based on the following: 1) continued roll-out of PLA to increase marketplace take rate; 2) payments to add FCF, with potential upside from float to be generated from funds payable; 3) ongoing product development along its updated strategic direction to defend core, become seller platform of choice, and convert buyers into sellers/ramp C2C," analyst Stephen Ju said. 

KeyBanc analyst Edward Yruma maintained his overweight rating while raising his price target to $90 from $80 per share. 

"At the risk of oversimplifying the extensive changes, EBAY is simply becoming a better place to buy and sell items. Auto parts (a new focus vertical) has a large TAM and is not a focus of private disrupters. Advertising ($207M, +9% y/y) represents a compelling NT opportunity, and our field work as an eBay power seller points to strong seller ROAS on new services," Yruma said.