eBay: Jefferies downgrades stock

(CercleFinance.com) - On Tuesday Jefferies downgraded eBay shares from 'hold' to 'underperform', while reducing its target price for them from $60 to $52.


In a research note, the broker said that it was concerned about the combined effect of slowing advertising revenues and marketing investments made to revive flagging growth.

It believes that the difficulties encountered in China are a further cause for concern and pose an additional risk to the online retail group's performance.

According to Jefferies, the valuation multiples on which the stock is currently trading cannot be considered sustainable in view of the auction specialist's growth prospects.


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