USB Piper Downgrades eBay to 'Neutral'
USB Piper downgraded eBay (EBAY ) to neutral.
Analyst Safa Rashtchy says the fact that the economy has caught up with eBay will impact near-term growth and shatter investors' belief in the company magic that helped it buck trends for so long. He says the company will still remain the top performing company, and the best online business model, with substantial growth opportunity, however, the high multiple that eBy is getting will be lowered somewhat. Rashtchy is concerned that U.S. auctions are showing slowing sequential growth, and says revenue per auction is declining. He expects the company to have modest growth guidance for 2002 during Analyst Day on Oct. 29. He cut the $80 target to $53.
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