UPDATE: Compass Point Downgrades eBay to Neutral on Valuation

Compass Point lowered its rating on eBay

from Buy to Neutral with a reiterated $46 price target. Compass Point commented, "In February we initiated on eBay at Buy with the share price at $35.14. Yesterday the shares closed at $50.48 or essentially at the 52 week high. Yesterday's close marks a 44% gain since our initiation and compares to the 7.5% gain on the S&P over the same period. The current share price equals +20x our estimate of both this year's EPS and EV/FCF. At these levels we consider the shares fairly valued. Therefore, we are downgrading our rating from Buy to Neutral. Our EPS estimates remain unchanged at $2.33 this year and $2.68 next year." eBay closed at $50.48 on Monday.