Needham raised its price target on eBay Inc. (NASDAQ:EBAY) to $122 from $115 and maintained a Buy rating, the firm said Wednesday. The updated target implies substantial upside from eBay's then-current share price of $82.18, with InvestingPro data indicating the stock was trading below its Fair Value.
The price-target increase followed eBay's strong fourth-quarter results and forward guidance. In response to the company report, Needham raised its adjusted EBITDA estimates for 2026 by 5%. The firm pointed to the business' 71.64% gross profit margins and $10.71 billion in revenue as supporting reasons for its more optimistic forecast.
In its note, Needham emphasized the clearer growth signal the company has provided by discussing performance through its Focus Categories, Recommerce and consumer-to-consumer (C2C) segments. Those areas together represent roughly two-thirds of eBay's gross merchandise volume and, according to the firm, grew about 10% in 2025. Needham said these metrics make it simpler to evaluate the platform's sustained growth potential.
The broker also cautioned that its model includes deceleration into 2026, leaving room for upside if the business outperforms those conservative assumptions. Needham described the company’s acquisition of Depop as a favorable strategic fit, noting the addition of enthusiast buyers to eBay's three strategic priority categories and the potential for technology-driven revenue synergies stemming from the deal.
Other sell-side reactions to eBay's fourth-quarter performance were mixed but generally more positive than prior assessments. Goldman Sachs raised its rating on eBay to Neutral from Sell and increased its price target to $88, citing better-than-expected quarterly results. TD Cowen kept a Hold rating with an $84 price target and projected double-digit revenue growth in the period, helped by favorable foreign-exchange conditions. Citizens reiterated a Market Outperform rating with a $115 target, expecting eBay to surpass GMV expectations due to strong demand in categories such as collectibles and luxury resale.
At the same time, BNP Paribas Exane initiated coverage of eBay with a Neutral rating and a $90 price target. The firm acknowledged eBay's prominent role in global e-commerce but expressed caution about the company's growth trajectory. Separately, French authorities have opened an investigation into eBay following a report alleging illicit goods were being sold on the platform, underscoring a regulatory uncertainty that accompanies recent positive financial developments.
The combination of refreshed analyst estimates, upgraded ratings from some firms and new coverage from others reflects a market reassessment driven by the company's recent results. Needham's larger 2026 EBITDA estimate and its elevated price target encapsulate the bullish interpretation of those results, while the regulatory inquiry and varied external views highlight remaining uncertainties.
Key points
- Needham raised its price target on eBay to $122 from $115 and kept a Buy rating after strong fourth-quarter results.
- Needham increased its 2026 adjusted EBITDA estimate by 5%, citing 71.64% gross profit margins and $10.71 billion in revenue.
- Other analysts adjusted ratings and targets, with upgrades and continued cautious coverage reflecting mixed but generally improved sentiment; a French investigation poses regulatory risk.
Risks and uncertainties
- Regulatory risk - French authorities have launched an investigation into alleged illicit goods on the platform, which introduces potential regulatory and operational uncertainty.
- Forecast sensitivity - Needham notes deceleration built into its 2026 estimates, highlighting that outcomes could differ and create upside or downside relative to current projections.
- Analyst caution - Initiations and neutral ratings from some firms reflect uncertainty about the company's growth trajectory despite strong quarterly performance.