WR Hambrecht believes that eBay (EBAY ) is on track to exceed its fourth quarter EPS estimates.
Analyst Derek Brown reiterates a strong buy rating on the stock, pointing to trends that suggest it will exceed his $209.1 million revenue and $0.12 fourth quarter cash EPS estimates.
He says eBay's relative valuation is extremely compelling. He notes that at the current price levels, the stock trades at a 20% discount to the broad group of technology and Internet bellwethers and at a heavier discount to Yahoo. Given eBay's strong financial outlook, improving operating fundamentals, global expansion opportunities, unmatched market leadership position, the analyst sees no justification for valuation discrepancies. He has a $75 12-month price target.