EBay Reports Solid Quarter
Published January 14th, 2006
With a 45% rally in its share price since May, some are making noise that eBay is becoming over valued.
But analyst Jordan Rohan of RBC Capital Markets isn’t one of them.
Encouraged by continued strong growth of customer listings, he’s looking for a “very solid quarter” for the online auctioneer when it reports fourth-quarter results on January 18.
He’s predicting 23 cents per share for the quarter, a penny better than consensus estimates and seven cents better than the same quarter a year ago.
By Rohan’s count, eBay’s listings grew 19.5% from the third quarter, or 4.5% more than previous estimates.
And that’s worth as much as $40 million to RBC’s $1.33 billion revenue estimate.
Rohan set a $49-per-share price target for eBay, about 12% above the current level. And he’s not that concerned that a tracking of keyword bidding activity slowed some from the third quarter.
