On Wednesday, BMO Capital Markets adjusted its price target for eBay (NASDAQ:) shares to $53.00 from the previous $49.00, while maintaining its market perform rating on the company.
The firm admits that eBay’s core category gross sales volume (GMV) grew 4% year-over-year, outpacing the overall market by 6 percentage points. Despite this, German and UK markets continue to face challenges due to broader macroeconomic factors that have softened overall sentiment.
BMO Capital Markets does not expect a positive change in overall GMV for eBay until at least the second half of 2024. However, the firm noted a forecast operating margin expansion of 60 to 100 basis points in 2024. This increase is due to eBay’s investments in improving the buyer and seller experience, as well as introducing general artificial intelligence tools that resonate well with users.
The revised price target of $53 takes into account eBay’s efforts to reduce costs. Additionally, the new target included the company’s plans to repurchase $2 billion of shares in 2024, signaling confidence in eBay’s financial strategy and the potential to enhance shareholder value.
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