NEW YORK (TheStreet) -- eBay (EBAY) stock has been reiterated as a "buy" with a $65 price target, Cantor Fitzgerald said Monday. The firm said first-quarter results, due after the bell Tuesday, should be inline with expectations with a pick-up in growth in domestic e-commerce.
"With pressure from Icahn waning, we believe that talk of a PayPal spinoff will take a backseat to renewed focus on how well eBay does operationally in the next few quarters. We continue to like EBAY as a value play for 2014," analyst Youssef Squali wrote in the report.
Separately, TheStreet Ratings team rates EBAY INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate EBAY INC (EBAY) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, growth in earnings per share and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- EBAY's revenue growth has slightly outpaced the industry average of 11.7%. Since the same quarter one year prior, revenues rose by 13.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Although EBAY's debt-to-equity ratio of 0.17 is very low, it is currently higher than that of the industry average. To add to this, EBAY has a quick ratio of 1.74, which demonstrates the ability of the company to cover short-term liquidity needs.
- EBAY INC has improved earnings per share by 14.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, EBAY INC increased its bottom line by earning $2.18 versus $1.99 in the prior year. This year, the market expects an improvement in earnings ($2.98 versus $2.18).
- Net operating cash flow has increased to $1,713.00 million or 23.68% when compared to the same quarter last year. In addition, EBAY INC has also modestly surpassed the industry average cash flow growth rate of 22.21%.
- You can view the full analysis from the report here: EBAY Ratings Report