Baird has maintained an Outperform rating for eBay in its monthly update for April
Sell side firm Baird’s analyst Colin Sebastian, in his report on eBay Inc (NASDAQ:EBAY), updated his Marketplace Tracker for the month of April, and stated that company is expected to have growth in its Gross Merchandise Volume (GMV) growth.
On a year-over-year (YoY) basis, eBay’s volumes remained fairly steady while posting mid-single-digit growth, which was in line with March’s trend after adjusting the Easter shift. The report however also mentioned that during the last half of April, growth slowed a bit.
The 2H of April was a slower one for eBay, and its overall growth still lags behind the broader e-commerce trends, as recent investments in the structured data and seller policies are yet to drive further growth for company in 2H of current year.
After 1Q results, which have cooled down the fear of slowdown in growth rate, eBay appears to have been a decent track in 2Q and is expected to have a 3% growth in GMV.
The UK retail data reflected a mixed macro-economic picture, but e-commerce remains a brighter spot for the company. According to data released by Barclaycard, the overall consumer spending in UK soared by 1.9% on YoY basis in April as compared to 1.6% in March. On the other hand, online spending witnessed increase of 14% in April, as compared to the same period a year ago. The growth rate for online spending amounted to 10% on YoY basis in March. (Online Spending comprises of 25%of overall consumer spending).
The sell-side firm has maintained an Outperform rating for the stock, with a price target of $30.
The average price target of analysts covering the stock at the Street is of $28.10, with highest and lowest target of $36 and $22.50 respectively. Out of 39 analyst covering the stock at Street, 24 rate it as a Hold, seven rate it as a Buy, while six rate it as a Strong Buy.