Shares in eBay (EBAY) are moving higher today while Etsy (ETSY) stock is moving lower after investment bank Morgan Stanley (MS) issued calls on both e-commerce stocks early this morning.
"We believe eBay is best-positioned to capture upside from generative AI in 2024," Morgan Stanley analyst Nathan Feather said, according to Bloomberg.
Feather upgraded eBay’s stock to Buy from Sell and boosted his price target to $62 to $35, making him the most bullish analyst following the stock, according to Bloomberg. The new price target gives the stock implied upside of more than 22% from current levels.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Feather also recommended a pair trade with Etsy, downgrading the stock to Sell from Hold and lowering his price target to $55 from $64, according to Barron's. The new price target on Etsy represents downside of about 18% from current levels.
"We expect the growth profiles to converge and model both grow earnings before interest, tax, depreciation, and amortization (EBITDA) at a 5% '23-'26 compound annual growth rate," Feather said, adding that eBay trades at a 35% discount to Etsy on 2025 EBITDA, according to Barron's.
Argus agrees with the eBay call
Agreeing with the bullish stance on eBay, Argus Research has a Buy rating on the stock and a $58 price target.
"Following the 2015 PayPal spinoff, and the sale of StubHub, the Classifieds business, and other assets, eBay has become a more focused e-commerce retailer," Argus said in a March 8 report. "CEO Jamie Iannone is working to strengthen the eBay Marketplace platform through a blizzard of new features and enhancements centered on improving the user/seller experience, including new seller tools underpinned by generative AI models."
Analysts' average target price on eBay is $50.98, according to S&P Global Market Intelligence, giving the stock essentially no implied upside in the next 12 months or so. The Street's consensus recommendation is Hold.
Truist disagrees with the Etsy call
Truist analyst Youssef Squali strongly disagrees with Morgan Stanley’s stance on Etsy, reiterating his Buy rating and $85 price target in a March 18 report.
"We believe ETSY is an attractive business model with a differentiated offering and a number of product and marketing levers to drive growth and profitability over the next several years," Squali said. "The opportunity ahead, coupled with management's execution track record, fuel our confidence that Etsy can execute against these initiatives and create value for shareholders over the next 12 months."
Analysts' average target price on Etsy is $81.73. Although that gives ETSY implied upside of more than 20% over the next year or so, the Street's consensus recommendation stands at Hold.
Related Content
-
How Another Trump Presidency Will Impact the Stock Market in 2025President Trump will have little direct impact on the stock market, but his policies, initiatives and posts certainly can make prices move. Here's how.
-
Stock Market Today: Stocks Are Mixed Ahead of CPICool wholesale inflation numbers provide only slight relief before Wednesday's release of December Consumer Price Index data.
-
How Another Trump Presidency Will Impact the Stock Market in 2025
President Trump will have little direct impact on the stock market, but his policies, initiatives and posts certainly can make prices move. Here's how.
-
Stock Market Today: Stocks Are Mixed Ahead of CPI
Cool wholesale inflation numbers provide only slight relief before Wednesday's release of December Consumer Price Index data.
-
Irrevocable Trusts: So Many Options to Lower Taxes and Protect AssetsIrrevocable trusts offer nearly endless possibilities for high-net-worth individuals to reduce their estate taxes and protect their assets.
-
Stock Market Today: Dow Leads as UnitedHealth Stock PopsUnitedHealth was the best Dow Jones stock Monday on reports that Medicare Advantage payments could rise in 2026.
-
How to Organize Your Financial Life (and Paperwork)To simplify the future for yourself and your heirs, put a financial contingency plan in place. The peace of mind you'll get is well worth the effort.
-
Financial Confidence? It's Just Good Planning, Boomers SayBaby Boomers may have hit the jackpot money-wise, but many attribute their wealth to financial planning and professional advice rather than good timing.
-
Will You Be Able to Afford Your Dream Retirement?You might need to save more than you think you do. Here are some expenses that might be larger than you expect, along with ways to ensure you save enough.
-
Three Steps to Simplify Paying Your Taxes in RetirementOnce you retire, how you pay some of your taxes can change. Here's how to get a handle on them so you don't run afoul of the IRS and face penalties.
