Credit Suisse Maintains eBay At Neutral, Lowers Price Target To $62

Stephen Ju of Credit Suisse on Thursday maintained a Neutral rating on eBay EBAY with a price target lowered to $62 from a previous $69 given several headwinds. Ju notes that eBay's Marketplaces segment profit was lower than estimated due to gross merchandise volume being lower than expected while Payments saw higher operating expenditures. “Even with the exogenous aforementioned headwinds, fiscal 2015 earnings per share guidance as we adjust for the impact from the dis-synergies was better than expected as eBay continues to repurchase shares and rationalize its cost base,” Ju wrote. The analyst adds that eBay is “making the best” of an enforced transition period. Nevertheless Ju notes that there are concerns relating to shareholder value creation for the newly-separated companies over the longer term. As such, investors are recommended to remain in a holding pattern heading into the PayPal split.