Retailers, consumers and prices
Check Out Line: Anyone bidding on an overhaul at eBay?
Check out the transformation eBay, the Internet’s premier auction website, hopes to pull off.
Chief Executive John Donahue has vowed “ruthless” change to its model.
Skeptics saw nothing new in eBay’s plans, however. Analysts have said eBay needs to raise its performance in the recession and fend off online retailer Amazon.com, which has stolen market share.
On Thursday, Barclays cut its price target on eBay to $14 from $15 per share.
While eBay recognizes marketplace challenges and the need for site innovation, Barclays analyst Douglas Anmuth said in a note that “we still thought the day was light on details & this raises more questions about execution given the co.’s recent track record & the now lofty goals over the next few yrs. Having confidence in 2011 outlook is also difficult when co. seems to have limited visibility in 2009.”
Bernstein analyst Jeffrey Lindsay said in his research note that turning around eBay’s marketplaces business will be more difficult and take longer than expected, but he raised his price target on the shares.
“We are raising our target price slightly to $15.50 (from $14) to reflect management’s more aggressive strategies for PayPal and Skype, but we continue to rate eBay Market Perform.”
Also in the basket:
Neiman Presses Designers for Cuts (Wall Street Journal)