BMO Capital Markets boosted its price target on eBay Inc. to $120 from $107 on Wednesday and reaffirmed an Outperform recommendation on the shares. The firm cited a fourth-quarter 2025 performance that outpaced consensus and first-quarter 2026 guidance that came in ahead of Street expectations.
At the time of the note, eBay was trading at $85.83 with a market capitalization of $38.95 billion. The company is described as slightly undervalued based on InvestingPro Fair Value assessments.
BMO highlighted that eBay's fourth-quarter 2025 net revenue and earnings per share exceeded consensus estimates by 3% and 14%, respectively. The broker also pointed to first-quarter 2026 outlooks for gross merchandise volume and net revenue that were each 9% above consensus projections. BMO drew attention to eBay's 71.45% gross profit margin as a noteworthy contributor to the company's margin profile and overall financial results.
According to the note, demand for bullion and collectible coins provided a tangible lift to the quarter. BMO also reported that growth in eBay’s set of focus categories accelerated by 100 basis points to 16% on a constant-currency basis, with the Collectibles segment cited as the primary driver of that acceleration.
Strategic moves were also flagged by the firm. eBay’s acquisition of Depop for $1.2 billion was noted as adding roughly $1 billion in gross merchandise sales to eBay’s fashion category, which the broker said already exceeds $10 billion in gross merchandise volume. BMO characterized the company as leaning further into the re-commerce market and said it raised its internal estimates accordingly.
The fourth-quarter results have prompted several other analysts to adjust their assessments. Truist Securities raised its price objective to $94 while maintaining a Hold rating, citing continued execution and growth initiatives. Piper Sandler increased its target to $105, highlighting year-over-year gross merchandise volume growth of 8% that outpaced the company’s guidance range.
Needham set a new target of $122 and raised its 2026 EBITDA estimates by 5% after the quarter and improved guidance. Goldman Sachs upgraded its recommendation on the stock to Neutral from Sell and lifted its target to $88 on the back of results that beat expectations and what it described as solid operating momentum. TD Cowen reiterated a Hold rating with a $84 target, noting expectations for double-digit revenue growth for the quarter helped by favorable foreign exchange conditions.
Collectively, these broker moves reflect a broadly more constructive analyst response to eBay’s recent financial performance, its category-level momentum, and the incremental scale from the Depop acquisition.
Summary
BMO raised its eBay price target to $120 and retained an Outperform rating after quarterly results and guidance outperformed consensus. Key drivers cited include strength in collectibles and bullion, accelerating growth in focus categories, and the Depop acquisition adding scale to the fashion category. Several other brokerages also adjusted targets and ratings following the quarter.
Key points
- BMO increased its price target to $120 from $107 and kept an Outperform rating.
- Q4 2025 net revenue and EPS beat consensus by 3% and 14%; Q1 2026 GMV and net revenue guidance each were 9% above consensus.
- Depop acquisition for $1.2 billion adds about $1 billion in gross merchandise sales to a fashion category that exceeds $10 billion in GMV.
Risks and uncertainties
- Future company performance could diverge from upgraded estimates if demand in highlighted categories such as collectibles or bullion softens - this affects equities in the consumer internet and e-commerce sectors.
- Integration risk related to the Depop acquisition could impact fashion-category contributions and gross merchandise sales if execution does not proceed as anticipated - relevant to e-commerce and retail-focused markets.
- Analyst expectations and price targets may be adjusted again if macro factors or foreign exchange conditions change, which would affect revenue growth trajectories referenced by brokers.