eBay Target Raised to $110 on 9.8% Q1 GMV Growth and Depop Deal
UBS raised eBay's price target to $110 after forecasting Q1 GMV growth of 9.8% FXN, revenue of $3 billion and adjusted EPS of $1.53–$1.59. It hiked its P/E multiple to 15x on focus-category momentum and a Q2 Depop acquisition, while warning of Middle East conflict and higher shipping costs.
1. UBS Upgrades Price Target
UBS raised eBay's price target from $96 to $110 and maintained a Neutral rating, reflecting confidence in the company’s growth drivers while acknowledging potential headwinds later in the year.
2. Q1 Forecast Highlights
The bank forecasts Q1 gross merchandise volume growth of 9.8% on a foreign exchange-neutral basis, revenue of $3 billion, non-GAAP operating margins between 28.3% and 29.2%, and adjusted EPS of $1.53 to $1.59, with US GMV up 19.3% and international GMV up 1%.
3. Momentum and Strategic Moves
Momentum in focus categories—up 16% in Q4—and a pending Depop acquisition support long-term growth, alongside launches of eBay Live in new markets and expanded shipping solutions.
4. Risks and Valuation Shift
UBS warned that elevated shipping costs and the Middle East conflict could weigh on consumer spending, yet it raised its P/E multiple to 15x from 14x, citing sustainable mid-single-digit FXN growth into 2027 and a low-teens EPS growth trajectory supported by share buybacks.