eBay "hold," target price reduced

05/23/06 - Deutsche Securities

NEW YORK, May 23 (newratings.com) - Analyst Jeetil Patel of Deutsche Bank Securities maintains his "hold" rating on eBay (EBAY). The target price has been reduced from $35 to $30.

In a research note published yesterday, the analyst mentions that the company has maintained aggressive promotional activity to cope with tough comps. eBay’s share price is likely to be volatile through summer on account of tough listings comps along with no US growth, decelerating UK trends and seasonality, as well as rising competition from Google Base and lower payments pricing as compared to PayPal pricing, the analyst says.