FMP
Apr 18, 2024 10:56 AM - Davit Kirakosyan
eBay (NASDAQ:EBAY) shares gained more than 3% pre-market today after Morgan Stanley analysts upgraded to Overweight from Underweight, substantially raising the price target to $62 from $35. The analysts highlighted eBay's adoption of site-wide horizontal solutions and generative AI innovations as key factors that are expected to drive a balance of slight Gross Merchandise Volume (GMV) and adjusted EBIT growth, projecting a +1%/+5% CAGR from 2023 to 2026.
The analysts suggest that returning to positive FXN GMV growth amid a tight macroeconomic environment could strengthen investor confidence in eBay's medium-term growth prospects, potentially occurring sooner than anticipated in the first half of 2024. Despite eBay and Etsy having similar growth profiles, eBay currently trades at a roughly 35% discount to Etsy on 2025 EV/EBITDA. The analysts argue this provides a strong basis for potential multiple expansion should eBay execute effectively. The new $62 price target reflects an estimated 8.8x 2025 EV/EBITDA, prompting the upgrade from Underweight to Overweight.
Sep 11, 2023 1:38 PM - Rajnish Katharotiya
Price to Earnings is one of the key metrics use to value companies using multiples. The P/E ratio and other multiples are relative valuation metrics and they cannot be looked at in isolation. One of the problems with the P/E metric is the fact that if we are in the peak of a business cycle, earni...
Sep 11, 2023 1:49 PM - Rajnish Katharotiya
Price-to-Earnings ratio is a relative valuation tool. It is used by investors to find great companies at low prices. In this post, we will build a Python script to calculate Price Earnings Ratio for comparable companies. Photo by Skitterphoto on Pexels Price Earnings Ratio and Comparable Compa...
Oct 17, 2023 3:09 PM - Davit Kirakosyan
Shares of VMware (NYSE:VMW) witnessed a sharp drop of 12% intra-day today due to rising concerns about China's review of the company's significant sale deal to Broadcom. Consequently, Broadcom's shares also saw a dip of around 4%. Even though there aren’t any apparent problems with the proposed solu...