eBay (EBAY) PT Raised to $105 at Truist Securities, on GME bid: "we're skeptical of the ultimate success of this pursuit"

Truist Securities analyst Youssef Squali raised the price target on eBay (NASDAQ: EBAY) to $105.00 (from $94.00) while maintaining a Hold rating.

The analyst commented: "We remain skeptical that this proposal will be successful as 1) the 50% cash/50% Gamestop stock may give eBay shareholders some pause, especially the stock portion given the volatility in GME (it fluctuated between $35-$20 in the TTM), 2) eBay's revenue base is ~3x and its net income is 15x that of GME (using consensus ests), an indication of the more complex nature of running eBay, 3) eBay's market cap is ~4x that of GME and the proposed $56B offer is 5x GME's market cap, and importantly 4) there seems to be a lack of meaningful synergies between the two entities in our opinion. Rather than drive enhanced proposed profitability through revenue growth and synergies, all of the expected EPS improvements would be coming from cost cuts to S&M, P&D and G&A. All that said, this is a development worth monitoring - stay tuned. "

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