Here’s Why Argus Remained Bullish On eBay

• Argus analyst Joseph Bonner lowered the price target on eBay Inc (NASDAQ: EBAY) to $69 from $88 but kept a Buy. The price target implies an upside of 23.8%.

• eBay will need to show that it can successfully carve out product niches among sellers in the face of severe competition from Amazon.com Inc (NASDAQ: AMZN), Walmart Inc (NYSE: WMT), and start-up category retailers like Etsy Inc (NASDAQ: ETSY).

• However, eBay shares remain attractively priced relative to peers on a historical basis.

• Bonner notes the pandemic e-commerce comparisons get easier for eBay moving through 2022. eBay also continued to reinvent itself via its focused Marketplace strategy and new revenue stream additions in advertising.

• Last month, eBay reported Q4 revenue of $2.613 billion, up 5% year-on-year, beating the consensus of $2.61 billion. Adjusted EPS of $1.05 topped the consensus of $1.00.

• eBay’s Q1 FY22 revenue forecast of $2.43 billion – $2.48 billion missed the consensus of $2.62 billion. eBay’s EPS guidance of $1.01-$1.05, below the consensus of $1.10.

• eBay’s FY22 revenue outlook of $10.3 billion – $10.5 billion missed the consensus of $10.95 billion and EPS forecast of $4.20-$4.40, below the consensus of $4.51.

• Also See: eBay Hosts Investor Day.

• Price Action: EBAY shares closed higher by 0.78% at $55.75 on Tuesday.

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