Aegis Lowers eBay Revenue Estimate On European Economic Softness, Strong Dollar
A soft European economy and strong U.S. dollar led Aegis Capital Wednesday to lower its full-year 2019 revenue estimates for eBay Inc. (NASDAQ: EBAY).
The Analyst
Aegis analyst Victor Anthony maintained a Buy rating on eBay and lowered the price target to $40 from $44.
The Thesis
The auction site is likely to suffer from expected lower overall merchandise sales volume because of economic softness in Europe and a strong U.S. dollar, Anthony said in a Wednesday note.
The strengthening of the dollar has a negative impact on exports, and eBay has a good-sized cross-border business, the analyst said.
The risk factors cited by Anthony include:
More competition from other e-commerce companies, particularly Amazon.com, Inc. (NASDAQ: AMZN)
The uncertain prospects surrounding the potential for additional future government regulations.
The possibility of higher postal rates.
Overall macro issues affecting the broader stock market, including trade wars, interest rates and energy prices.
Price Action
Shares of eBay were 2.78 percent higher at $28.85 at the close Wednesday.
Related Links:
Morgan Stanley Downgrades eBay On Slower GMV Growth
What To Do With eBay Now? Analysts Debate
Latest Ratings for EBAY
Dec 2018 | Wells Fargo | Maintains | Outperform | Outperform |
Dec 2018 | Morgan Stanley | Downgrades | Overweight | Equal-Weight |
Nov 2018 | Citigroup | Maintains | Buy | Buy |
View More Analyst Ratings for EBAY
View the Latest Analyst Ratings
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