Shares of eBay Inc (NASDAQ:EBAY) rallied on Thursday after the company reported its third-quarter results on Wednesday.
Here are some key analyst takeaways:
- Needham analyst Bernie McTernan reiterated a Buy rating, while raising the price target from $135 to $140.
- Rosenblatt Securities analyst Scott Devitt maintained a Buy rating, while lifting the price target from $132 to $137.
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Needham: eBay reported another strong quarter of GMV (gross merchandise value) growth, up 16% in the third quarter despite the difficult comparisons, McTernan said in a note. He added that the company is growing its business by focusing on three areas:
- Focus Categories: Specialized product sections grew 24% year over year.
- C2C Sales: Regular consumer-to-consumer selling grew more than 20%.
- Recommerce: The sale of used or refurbished goods grew more than 20%.
eBay Live, the company’s live-stream shopping feature, is "now at a multi-billion run rate" for GMV and is growing by triple digits, the analyst stated.
"We forecast a deceleration next year to ~6% GMV growth and margin compression, which leaves potential upside for the company if they are able to sustain momentum," he further wrote.
Rosenblatt Securities: eBay reported third-quarter results well above expectations, Devitt said. While GMV grew 16% year over year, non-GAAP earnings grew 12% to $1.51 per share, despite the company increasing investment in Depop and its strategic priorities, he added.
eBay’s newer initiatives have begun contributing, with eBay Live reaching a multi-billion-dollar GMV run rate and Depop’s U.S. GMV growing 100% year over year, the analyst stated. "As a result, we believe eBay’s turnaround is well established, and the debate now focuses on whether growth is durable enough to hold through tougher comparisons in 2027," he further wrote.
EBAY Stock Price Activity: eBay shares are trading higher by 3.83% at $122.54 at the time of publication on Thursday, according to Benzinga Pro data.
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