eBay's GMV Forecast Reduced After Q3 Results, Analyst Sees Softness In UK And Germany
Portfolio Pulse from Nabaparna Bhattacharya
Benchmark analyst Daniel L. Kurnos has reiterated a Buy rating on eBay Inc but lowered the price target to $56 from $60 following Q3 results. eBay's revenue rose 5% Y/Y to $2.500 billion, slightly missing the consensus of $2.502 billion. The 3Q GMV of $17.99 billion was modestly ahead of consensus. However, due to FX headwinds and sluggish q/q improvement in advertising, revenue was only in line. The analyst reduced the 2024 GMV forecast by almost 4% to flat y/y due to underlying softness in the U.K. and Germany. The EBITDA comes in by roughly $60 million, although margin projections remain largely intact.
November 08, 2023 | 7:48 pm
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eBay's price target has been lowered to $56 from $60 by Benchmark analyst Daniel L. Kurnos following Q3 results. The 2024 GMV forecast has been reduced by almost 4% due to softness in the U.K. and Germany. The EBITDA comes in by roughly $60 million, although margin projections remain largely intact.
The reduction in eBay's price target and 2024 GMV forecast by the analyst is likely to negatively impact the company's stock in the short term. The softness in the U.K. and Germany markets, which are significant for eBay, is a concern for investors. However, the intact margin projections might mitigate some of the negative impact.
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