Stifel maintains eBay stock's hold rating, price target at $45

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Stifel maintains eBay stock's hold rating, price target at $45
Credit: © Reuters.

On Wednesday, Stifel reaffirmed its Hold rating on eBay (NASDAQ: EBAY ) shares, maintaining the price target at $45.00. The firm's analysis followed eBay's fourth-quarter results, which exceeded expectations in terms of revenue and adjusted EBITDA.

Despite the positive performance, eBay's management pointed out current challenges, including a difficult market in the U.K. and a dip in U.S. retail sales during January.

The company anticipates that Gross Merchandise Volume (GMV) will return to positive growth on a currency-neutral basis in either the third or fourth quarter of 2024.

eBay's focus categories, especially its Autos division, are performing well, with over 100 million vehicles now listed in eBay's garage. These categories are expected to achieve nearly 30% penetration by the end of the year.

The enthusiasm for eBay's marketplace remains consistent among buyers, with the number of enthusiast buyers stable at around 16 million and their annual spend per enthusiast holding steady at $3,000.

Despite the stable trends among these dedicated users, the broader economic environment continues to pose uncertainties for the e-commerce sector.

Stifel's position is informed by the anticipation of a clearer economic outlook that could potentially impact the e-commerce landscape positively. Until such improvements are visible, the firm's stance on eBay's stock remains cautious, with no alterations to the price target.

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