On Thursday, TD Cowen made an adjustment to its price target for eBay (NASDAQ:EBAY), increasing it to $45.00 from the previous $42.00, while keeping a Hold rating on the shares. The firm's decision came after eBay's first-quarter results showed a slight outperformance compared to the analyst's and consensus estimates. This was attributed to the company's Focus Categories and a one percent foreign exchange tailwind to Gross Merchandise Volume (GMV).
eBay's second-quarter GMV guidance aligned with the midpoint of TD Cowen's estimates. However, the Adjusted Operating Income margin guidance was 75 basis points below the firm's midpoint estimate, including a 50 basis points headwind from foreign exchange. Despite this, eBay's management reaffirmed the full-year 2024 outlook for positive GMV in the second half of the year and an 80 basis points margin expansion at the midpoint.
The revised price target reflects TD Cowen's updated estimates, maintaining a neutral stance on the stock. The analyst noted the key factors influencing the decision, including the performance of eBay's Focus Categories and the impact of foreign exchange movements on the company's financial metrics.
eBay's consistent performance and management's confidence in achieving positive GMV growth in the latter half of the year, along with expected margin expansion, are factors that investors may watch closely. The company's guidance and TD Cowen's price target suggest a steady outlook for eBay as it navigates through the current financial period.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.