Topeka Suggests eBay Investors 'Remain On The Sidelines On Weak Fundamentals'

Victor Anthony of Topeka Capital Markets on Thursday reiterated a Hold rating on shares of eBay Inc (NASDAQ: EBAY) with a $57 price target, as shares are likely to remain range-bound until the company finalizes a split of its PayPal segment.

“Gross Merchandise Volume growth continues to be impacted by the cyber attack and the Google policy changes and management noted that trends will get worse before they get better,” Anthony wrote.

The analyst adds that PayPal's growth remains strong, but take rates and margins remain under pressure as the company continues to heavily invest to remain competitive. Anthony also notes that eBay's Marketplace business remains “weak” and investments at Payments are pressuring margins.