EBay downgraded at Morgan Stanley on concerns of deterioration
Dec 12, 2018 11:43 a.m. ET
Morgan Stanley analyst Brian Nowak cut his rating on eBay Inc. EBAY, +1.65% shares to equal-weight from overweight on Wednesday, writing that he was "wrong about how quickly core markets would deteriorate." He said that eBay has posted slower-than-expected growth in gross merchandise volume in the three quarters since he upgraded the shares back in April. The company is now expected to grow this metric by low- to mid-single-digit rates, which Nowak thinks will impact how much Wall Street will be willing to pay for eBay shares. He lowered his target price to $33 from $55. Nowak cites competition from large retailers and a marketing pullback as risks to the company's success. Shares of eBay are up 0.5% in morning trading, though they're down 23% so far this year. The S&P 500 SPX, -0.01% is little changed in that time.
https://www.marketwatch.com/story/ebay-downgraded-at-morgan-stanley-on-concerns-of-deterioration-201...
