eBay Inc (NASDAQ:EBAY, ETR:EBA) has earned a price target boost from UBS ahead of its second quarter earnings report, with analysts seeing the eCommerce platform on a clear path to durable low double-digit earnings per share (EPS) growth.
“We take the recession scenario for 2H 2025 and 2026 off the table and contemplate a sustained low-single digit forex neutral growth for Gross Merchandise Value (GMV),” the analysts wrote.
They now forecast US GMV growth of approximately 2% and flat international GMV for 2026, rising slightly to 2% and 1% respectively in 2027.
Their updated projections “place eBay in a place where it can sustain 3% net revenue, 6% growth in operating Income, and 10% adjusted EPS growth for the near to medium term,” the analysts wrote.
For Q2, Wall Street analysts on average expect eBay to report EPS of $1.30 on revenue of $2.65, up 10.2% and 2.9%, respectively, from the year-ago quarter.
Looking ahead, UBS expects continued momentum in eBay’s focus categories, which now make up about one-third of global volume.
“Collectibles is positioned to remain a key driver of growth in the category, as it has for two quarters now, as trading card demand growth accelerated for the ninth consecutive quarter in Q1 2025,” the analysts wrote.
UBS also sees upside to take rates from new initiatives. They believe that advertising and eBay International Shipping will help revenue grow faster than GMV, as take rates rise with the continued rollout of product listing ads, which could climb to 3% of GMV, up from 2.4% in Q1 and 2.3% in Q4.
The firm further points to the ongoing rollout of eBay’s C2C category buyer protection fee in the UK as a lever to pull international take rates higher starting in Q2.
While UBS acknowledges eBay's stable outlook and incremental growth drivers, it sees limited valuation upside from current levels.
As such, despite raising its price target to $82 from $73, UBS maintained its ‘Neutral’ rating on eBay. Shares of eBay closed at about $118 on Tuesday.
“As we move past peak tariff-related fears, investors who have rotated into eBay shares as a relative safe haven are likely to move in the other direction,” the analysts concluded.
eBay will release its Q2 report on Wednesday.