Kaufman Bros. analyst Aaron Kessler this morning cut his rating on eBay (EBAY) to Hold from Buy, asserting that recent data points from various market research firms suggest the company is seeing slower-than-expected growth in gross merchandise value in the U.S. market.
Kessler also says that foreign exchange is “beginning to become a headwind.”
And he adds that the stock is now “more fairly valued” at 16x 2010 pro forma EPS. “While we remain positive on recent eBay changes,” including listing fee adjustments that went live March 30, “we believe shares may already be anticipating some of these positive expected benefits with shares up over 20% since mid-February. He keeps his $31 price target on the stock.
EBAY this morning is down 49 cents, or 1.8%, to $26.36.
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