eBay’s German headquarters
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The market seems to be underestimating e-commerce giant eBay , according to one analyst.
Deutsche Bank analyst Lee Horowitz initiated coverage of eBay (ticker: EBAY) with a Buy rating and $64 price target. “[W]e are bullish on eBay at current levels and believe that in a more ‘value-oriented market’ the risk/reward for eBay is compelling,” Horowitz wrote in a research report.
“We believe that the market is under-appreciating eBay’s positioning within the secular growth trends associated around re-commerce and, more importantly, the impressive executional focus that has followed CEO Jamie lannone’s arrival,” he wrote.
EBay stock is up 3.7% Tuesday to $53.97. The stock has fallen 19% so far this year, about even with the 18% slide in the Nasdaq Composite index .
In February, eBay had provided disappointing financial guidance for 2022 that fell short of analysts’ expectations, but Horowitz wrote that the outlook is “extremely conservative,” and now only reflects a worst-case scenario.
“We believe it is more likely that second-half 2022 growth comes in ahead of expectations, putting eBay on more-stable footing to drive sustainable mid-single-digit volume growth in 2023, as guided by the company,” Horowitz wrote.
Write to Logan Moore at [email protected].
