eBay (NASDAQ: EBAY) shares have advanced from $28 above $61 since the beginning of April, and the current price stands around $50. The company raised its FY 2020 outlook, and Credit Suisse raised its price target on eBay to $70.
Fundamental analysis: Credit Suisse raised its price target on eBay to $70
eBay is an online e-commerce marketplace that generates steady revenue and a healthy profit margin. eBay continues to expand its market place, and according to analysts, this company has a bullish outlook.
eBay reported Q3 results at the end of October; total revenue has increased by 25.5% Y/Y to $2.61B while Q3 GAAP EPS was $0.88 (beats by $0.27). Total revenue has increased above the expectations (+$40M), and the company raised its FY 2020 outlook.
The company declared a $0.16 per share quarterly dividend, which is in line with previous, and despite the challenging pandemic environment, the dividend remains safe. “Our third-quarter performance reflects the strength of our newly focused strategy coupled with the enormous untapped potential of our marketplace,” said the CEO of the company.
eBay continues to invest in creative and innovative customer experiences, and some prediction says that e-commerce sales will grow by 25% to 35%, Y/Y during the 2020-2021 holiday season. eBay shares remain in a buy zone after Credit Suisse raised its price target to $70, representing a 39% upside potential for shares and above the average Wall Street PT of $61.23.
“We maintain our Outperform rating, predicated on the following factors: 1) continued rollout of PLA to increase marketplace take rate; 2) payments to add FCF, with potential upside from float to be generated from funds payable; 3) ongoing product development along its updated strategic direction to defend
