What 5 Analysts Think Of EBay's Mixed Guidance For Q2

eBay Possibly Heading Into Four Quarters of Negative GMV Growth, Wedbush Says: 

The outlook on the sustainability of GMV gains during COVID-19 looks to be below Wedbush's expectations, with more limited visibility as mobility increases, analyst Arounian said. "So we move to the sidelines as we potentially head into four quarters of negative y/y GMV growth," the analyst wrote in the note.

Many of eBay's efforts are still relatively early as it builds out its recommerce efforts, collectible verticals like sneakers and watches, and efforts around authentication to drive a more competitive offering, Arounian said. This, along with improvements in technology, will likely drive a fundamental improvement in the platform, he added.

"While there remain positives to the eBay story vis a vis pre-COVID, we look for more clarity and a better entry point at this stage," Wedbush said.

Limited Visibility, Tougher Comps May Mask Underlying Platform Improvement, KeyBanc Says: 

eBay's first-quarter results point to continued benefits from a systematic approach to improving category performance, while driving overall platform improvements, KeyBanc analyst Yruma said. Visibility into 2021, however, remains somewhat limited and difficult comparisons may mask continued underlying platform improvements, he added.

This, according to the analyst, will help drive sustainable mid-single-digit long-term GMV growth and 35% EBITDA margins in 2022. Additionally, eBay has non-core assets such as Adevinta and Adyen it could unlock to drive shareholder value, he added.

eBay Shares Fairly Valued, Raymond James Says: 

Despite strong momentum, eBay guided to lower than consensus EPS for the second quarter, and acknowledged potential volume pressure in the second half, Raymond James analyst Kessler said.

This is seen as an offshoot of potential improvement in global mobility post vaccinations and dissipation of the benefit of U.S. stimulus, the analyst said. "Given slowing momentum and our outlook for low-to-mid single-digit long-term revenue growth, we believe shares are fairly valued," Kessler wrote in the note.

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