EBay Shares Looking ‘Attractively Valued’
Published April 12th, 2006
Standard & Poor’s Equity Research upgraded shares of eBay to “buy” from “hold,” citing an attractive valuation.
“We are still somewhat skeptical about the strategic importance of Skype, and the price paid for it,” wrote analyst Scott Kessler in a research note Tuesday. However, “we are positive on eBay’s primary businesses.”
Kessler has an especially favorable view of PayPal, which he thinks has significant opportunities to expand beyond eBay in the U.S., in international markets and via mobile platforms.
“We also think the upcoming launch of eBay Express could be a favorable catalyst for eBay shares,” said the analyst.
Kessler maintained a $48 target price on shares of eBay (nasdaq: EBAY - news - people ), which have fallen some 18% since early January.
Related Articles