eBay Inc. (NASDAQ: EBAY) has been upgraded from Neutral to Buy by Daiwa Securities, with the firm setting a new price target of \$70. The move reflects growing confidence in eBay’s recent earnings performance and strategic positioning in the evolving e-commerce space.
🔹 In Q1 2025, eBay delivered adjusted earnings per share of \$1.38, beating the consensus estimate of \$1.34. Revenue also topped forecasts, coming in at \$2.59 billion, fueled by solid performance in key product categories and stable gross merchandise volume at \$18.8 billion.
🔹 The upgrade also factors in eBay’s shareholder-friendly capital allocation strategy. The company declared a quarterly dividend of \$0.29 per share, scheduled for June 13, 2025. This marks a 16% increase over the previous year’s payout and represents a dividend yield of around 1.68%, supported by a disciplined payout ratio of 26%.
🔹 Daiwa’s decision follows positive sentiment around eBay’s operational restructuring and the recent appointment of Peggy Alford as CFO. These strategic moves are aimed at streamlining operations and driving long-term value, making eBay more competitive in a challenging retail environment.
eBay’s strong fundamentals, improving earnings visibility, and focused leadership strategy position the stock as an appealing opportunity for investors looking for stability and modest income in the tech-driven retail sector.