Jefferies Lowers Price Target for eBay to $75 Due to Slowing Advertising Growth
Jefferies has lowered its price target for eBay (NASDAQ:EBAY, XETRA:EBA) from $80 to $75 while maintaining an 'Underperform' rating. The broker cited slowing advertising growth and weaker underlying EBITDA as key concerns. Jefferies expects the company's 2027 and 2028 EBITDA estimates to fall below consensus by 4% and 11%, respectively, due to declining profitability from lower-margin initiatives. The firm noted that eBay’s reported EBITDA has grown in recent years thanks largely to advertising revenue, which grew at an estimated margin of about 80%. However, Jefferies anticipates this growth will slow as the company laps attribution changes introduced earlier this year. The broker also highlighted growing reliance on lower-margin offerings like authentication guarantees and international shipping. Jefferies' $75 target implies a valuation that is significantly below sector averages due to eBay's expected slower EBITDA growth and potential for further consensus downgrades.
Tickers: $EBAY
Topics: advertising growth eBay EBITDA Jefferies Underperform rating