eBay: Jefferies downgrades stock
(CercleFinance.com) - On Tuesday Jefferies downgraded eBay shares from 'hold' to 'underperform', while reducing its target price for them from $60 to $52.
In a research note, the broker said that it was concerned about the combined effect of slowing advertising revenues and marketing investments made to revive flagging growth.
It believes that the difficulties encountered in China are a further cause for concern and pose an additional risk to the online retail group's performance.
According to Jefferies, the valuation multiples on which the stock is currently trading cannot be considered sustainable in view of the auction specialist's growth prospects.
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The information and analyses published by Cercle Finance are intended solely as decision-making aids for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
In a research note, the broker said that it was concerned about the combined effect of slowing advertising revenues and marketing investments made to revive flagging growth.
It believes that the difficulties encountered in China are a further cause for concern and pose an additional risk to the online retail group's performance.
According to Jefferies, the valuation multiples on which the stock is currently trading cannot be considered sustainable in view of the auction specialist's growth prospects.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as decision-making aids for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.