Analysts rate eBay Inc.(EBAY:NSD) with a Buy, $72 Target

STA Research
by: STA Research
eBay Inc. stock

Analysts rate eBay Inc. with a consensus Buy rating and a 12-month average Target price of $72.37 per share.

Benchmark maintains eBay Inc. with a Buy rating, and lowered the target from $75 to $71.

Piper Sandler maintained the Overweight rating,  and lowered the target from $73 to $68.

Based on the eBay Inc. stock forecasts from 21 analysts, the average analyst target price for eBay Inc. is USD 72.37 over the next 12 months. eBay Inc.’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of eBay Inc. is Slightly Bullish, which is based on 9 positive signals and 6 negative signals. At the last closing, eBay Inc.’s stock price was USD 50.06. eBay Inc.’s stock price has changed by -5.60% over the past week, -8.32% over the past month and -10.29% over the last year.

eBay Inc. operates marketplace platforms that connect buyers and sellers in the United States and internationally. The company’s Marketplace platform includes its online marketplace at ebay.com and the eBay suite of mobile apps. The company was founded in 1995 and is headquartered in San Jose, California.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk-adjusted returns

This stock has performed well, on a risk-adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers (for a hold period of at least 12 months) and are in the top quartile. Although stability is good, also keep in mind it can limit returns.

Underpriced compared to earnings

The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Dividend Growth

This stock has shown top quartile dividend growth in the previous 5 years compared to its sector

What we don’t like:

Below median total returns

The company has underperformed its peers on annual average total returns in the past 5 years.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to book value

The stock is trading high compared to its peers’ median on a price to book value basis.

Overpriced on a cash flow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Overpriced on a free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector.

 

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