Three Analysts Lowered Rating on eBay (EBAY)

According to Eric Savitz's Article, A trio of analysts lowered ratings on the eBay Stock:

1. Goldman Sachs analyst James Mitchell cut his rating on the stock to Neutral from Buy. He writes this morning that the lesson from the weak GMV in the quarter is that “eBay’s business is too large and complex to rapidly reinvigorate, especially in a challenging macro climate, causing consumers to trade down.” He chopped his price target on the stock to $30, from $38.
   
   
2. American Technology Research analyst Tim Boyd dropped his rating to Sell from Neutral; his price target is now $20, down from $35. He notes that GMV growth of 8% year-over-year is 400 basis points lower than the previous quarter. He says there were two reasons for the “horrid” growth: deteriorating consumer spending patterns reduced conversion rates and average selling prices, and growth in the Motors segment “fell off a cliff.” Boyd writes that he wonders if a 0% growth quarter, or even a negative growth quarter, could be coming soon. “In this market environment, cheap stocks can and will get cheaper in a hurry if they don’t deliver good news,” he writes.
   
   
3. Thomas Weisel’s Christa Quarles cut her rating on the stock to Market Weight, from Overweight. “Unfortunately, we didn’t see an improvement in the underlying fundamentals at eBay and conclude that shifting the purchase behavior of the typical eBay consumer will take at least 12-18 months,” she wrote in a note this morning. “While we applaud the aggressive stance that the relatively new eBay management team is taking with regard to seller pricing and buyer experience, we believe the company faces an uphill battle in trying to communicate these changes and alter behavior of its buyers.”

Today so far, eBay shares have tumbled $4.30, or 15.3%, to $23.80.

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