UBS downgraded eBay (EBAY) to neutral from buy given the potential negative impact to the company from a weaker economic environment, noting that the probability of recession has increased to 26% from 13% as per UBS economists.
The brokerage estimates 2022 gross merchandise volume (GMV) to decline approximately 17% year-over-year below the company's guidance of a 16-14% decline and the consensus estimate of a 15% decline.
While the company's shares have been one of the best performers within the eCommerce space year-to-date, the brokerage believes the shares could lag smaller cap peers when the market rebounds until investors have better visibility into organic growth at the company.
eBay (EBAY) has an average rating of Outperform and price targets ranging from $36 to $90, according to analysts polled by Capital IQ.
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
Price: 43.95, Change: -0.43, Percent Change: -0.97
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