eBay: stock up 2% as broker raises target price

(CercleFinance.com) - eBay shares closed up 2% in New York yesterday (75.
6 dollars), boosted by a BofA analyssis, which raised its target price for the stock from 70 dollars to 77 dollars.
The analyst praised the online retailer's 'better visibility' of its growth drivers.

The broker - which recently participated in a series of meetings between CEO Jamie Iannone, CFO Steve Priest and investors - highlights the optimism shown by management.

Executives are confident of the group's underlying growth over the next two years, its potential for category improvement and its market position, which is built on a user base of some 159 million.

From an investment viewpoint, however, questions remain about issues such as growth levers, advertising revenues and profit margins, it says.

BofA says it could start to be more positive on the stock if the company can catch up in the e-commerce market.

In the meantime, the broker maintains a "neutral" rating on the stock.



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