Brokerages Cut Price Target For eBay Inc (NASDAQ:EBAY) Shares

Posted In Technology - By Cyrus On Monday, July 21st, 2014 With 0 Comments

Dallas, Texas 07/21/2014 (ustradevoice) – There are at least two brokerages that have cut down their price target for online auctioneer eBay Inc (NASDAQ:EBAY) shares after the company announced its financial results for the second quarter and offered a soft outlook for the full year 2014. However, the two investment advisors have stuck to their rating of shares.

Price Tag Slashed

The two broking houses have slashed their price target between 3.13% and 8.33% for the online auctioneer shares. Deutsche Bank had reduced their price tag on the company’s stock to $55.00 from $60.00 while RBC Capital Markets has cut down its price target to $60.00 from $62.00.

However, both the investment advisors have not changed their respective rating on the stock. Deutsche Bank had reiterated its rating of Hold on eBay shares, whereas RBC Capital Markets had reiterated its rating of Outperform. Deutsche Bank analyst expects risk of disappointment during the fourth quarter though the company’s story remains intact.

RBC Capital Markets has also reduced its revenue expectation for the current year 2014 to $18.1 billion from $18.2 billion and for the next year to $20.6 billion from $21.0 billion projected by it earlier. However, the brokerage had lifted its EPS predictions for the year 2015 to $3.39 from $3.33.

Company’s Outlook

eBay Inc (NASDAQ:EBAY) has offered adjusted earnings forecast of 65 – 67 cents a share and GAAP earnings of 51 – 53 cents a share for the third quarter. The company had also guided its net revenues between $4.3 and $4.4 billion for the same period. On average, analysts’ expect the company to earn 67 cents a share on revenues of $4.37 billion for the third quarter.

While backing its earlier full year adjusted earnings outlook of $2.95 – $3.00 a share, the online auctioneer had cut the top end of its revenue guidance to $18.00 – $18.30 billion from $18.00 – $18.50 billion predicted by it earlier. Street analysts’ expect eBay to earn $2.97 a share on revenues of $18.17 billion for the full year 2014.

Earlier, analysts’ were predicting the company to deliver earnings of 71 cents a share for the third quarter $2.98 shares for the full year 2014 before the second quarter financial results announcement.

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