Benchmark boosted its price target for eBay Inc. to $115 from $110 while retaining a Buy rating, following quarterly results and guidance that the firm said came in ahead of expectations. Analyst targets across the market remain widely dispersed, with InvestingPro data cited showing a range from $62 to $120 and the stock trading around $86.52.
The upgrade reflects several developments disclosed with eBay's fourth-quarter 2025 results and fiscal 2026 guidance. Management announced a $1.2 billion acquisition and approved a new $2 billion share repurchase authorization, continuing what InvestingPro characterized as management's pattern of returning capital to shareholders and noting that "management has been aggressively buying back shares." Benchmark highlighted the stronger-than-anticipated guidance and the additional shareholder-return actions as reasons for the higher target.
On the top-line, eBay reported 6% foreign-exchange-neutral growth for 2025 and guided to the same level of organic growth for 2026. The company said it has integrated artificial intelligence across its platform, which management connected to increased content and revenue growth. These figures sit alongside recent InvestingPro metrics that show 7.95% revenue growth over the trailing twelve months and a five-year revenue compound annual growth rate of 7%.
Key operational characteristics of the business were reiterated in results commentary. Approximately two-thirds of eBay's gross merchandise volume is derived from consumer-to-consumer transactions and re-commerce, and the company operates a global marketplace with integrated shipping and payment infrastructure. Those elements of the model were cited in connection with strong unit economics, including a reported 71.45% gross profit margin and a 41% return on equity.
Benchmark analyst Daniel Kurnos underscored that the company's guidance looked robust even before factoring in an expected incremental one to two percentage points of growth from the recently announced Depop acquisition. Benchmark also pointed to a fiscal 2026 projected EPS of $5.66 and a current price-to-earnings multiple of 18.65. Using InvestingPro's Fair Value assessment, the stock was described as appearing slightly undervalued on those metrics.
eBay's fourth-quarter revenue and non-GAAP earnings per share both topped Wall Street estimates, beating by 3% and 4%, respectively, according to the company release. The quarter included an 8% year-over-year increase in gross merchandise volume on a foreign-exchange-neutral basis, a figure several analysts cited when adjusting their own targets.
Following the quarter, a set of analyst shops revised targets for the shares. BMO Capital raised its price target to $120, citing strong fourth-quarter results and first-quarter 2026 guidance that exceeded expectations. Truist Securities lifted its target to $94 while maintaining a Hold rating and pointing to continued execution on growth initiatives. Piper Sandler moved its target to $105, highlighting the 8% year-over-year GMV growth that exceeded eBay's guidance range. Needham raised its price target to $122 on a favorable outlook tied to the quarter and future adjusted EBITDA estimates. Cantor Fitzgerald, meanwhile, stayed neutral with a $90 price target despite the positive earnings surprise.
Benchmark's action adds to a wave of post-earnings analyst moves and underscores market focus on eBay's combination of growth, margin profile, and shareholder returns. For investors and analysts tracking marketplace operators, the company’s mix of re-commerce volume, integrated logistics and payments, AI-driven content enhancements, and capital return programs will likely remain central to earnings and valuation debates.
Metrics highlighted in the report
- Benchmark price target: $115 (up from $110)
- Analyst target range (InvestingPro): $62 to $120
- Current share price cited: $86.52
- 2025 FX-neutral growth: 6%; guided 2026 organic growth: 6%
- Trailing twelve-month revenue growth: 7.95%; five-year revenue CAGR: 7%
- Gross merchandise volume growth (Q4 YoY, FX-neutral): 8%
- Reported gross profit margin: 71.45%; return on equity: 41%
- Fiscal 2026 projected EPS: $5.66; current P/E: 18.65
- Corporate actions announced: $1.2 billion acquisition; $2 billion share repurchase authorization