Piper Sandler increased its price target for eBay Inc. (NASDAQ:EBAY) to $105 from $98 on Wednesday, while retaining an Overweight rating on the shares. At the time cited in the report, eBay was trading at $82.18 and appears undervalued under InvestingPro Fair Value estimates, with a reported total return of 20.36% over the past year.
The firm based its upward revision on stronger-than-forecast fourth-quarter results. eBay’s gross merchandise volume, or GMV, grew 8% year-over-year on a constant currency basis, exceeding the company’s guidance range of 4% to 6%. On a reported basis, U.S. GMV rose 19% year-over-year, underscoring momentum in the domestic market. Separately, InvestingPro data cited in the analyst note indicates eBay earned gross profit margins of 71.64%, a metric the firm said supports the company’s capacity to deliver robust financial outcomes.
Piper Sandler highlighted that investments in so-called focus categories are generating returns, and also pointed to a short-term boost from distinct segments such as bullion and coins. The analyst note also referenced eBay’s $1.2 billion acquisition of Depop from Etsy, a strategic move the firm said complements the company’s category efforts.
The report explained that management now has more profit dollars available to reinvest into top-line growth, and the revised price target reflects the firm’s higher financial estimates going forward. Piper Sandler analyst Tom Champion commented that the firm favors the improving fundamentals at the online marketplace.
Other brokerages and research houses have also updated their views following eBay’s quarter. Needham raised its price objective to $122 while maintaining a Buy rating after the strong fourth-quarter 2025 earnings print, which surpassed expectations from both Goldman Sachs and the wider market. Goldman Sachs moved its rating to Neutral from Sell and lifted its price target to $88, citing solid operating momentum attributable to prior investments. TD Cowen kept a Hold rating with an $84 target and projected double-digit revenue growth alongside a 7.8% year-over-year increase in GMV. Citizens preserved a Market Outperform stance with a $115 target, expecting GMV to beat forecasts thanks to rising demand in categories like collectibles and luxury resale.
Not all recent developments are purely positive. French authorities have opened an investigation into eBay over alleged illicit goods sales on its platform, a probe confirmed by the prosecutor’s office following reporting by a French newspaper. The inquiry represents a regulatory and reputational challenge for the marketplace and underscores potential enforcement risk.
Overall, the analyst reactions and reported results portray mixed but predominantly constructive signals for eBay: improving top-line momentum, category-led growth, and margin strength that enable reinvestment, set against regulatory scrutiny in at least one jurisdiction.
Key points
- Piper Sandler raised its price target on eBay to $105 from $98 and kept an Overweight rating, citing stronger-than-expected Q4 results.
- eBay reported 8% GMV growth year-over-year on a constant currency basis and 19% U.S. GMV growth on a reported basis; gross profit margin cited at 71.64%.
- Multiple brokerages adjusted ratings and targets after the quarter, and eBay completed the $1.2 billion Depop acquisition from Etsy.
Risks and uncertainties
- A French investigation into alleged illicit goods sales on eBay could pose regulatory and reputational risks to the marketplace and the broader e-commerce sector.
- Short-term uplifts from niche segments such as bullion and coins represent a potential variability in revenue sources that could affect near-term comparisons.
- Execution risk around integrating Depop and effectively redeploying increased profit dollars to sustain top-line growth could influence operating performance.