Piper Jaffray Remains Neutral On eBay

In a report published by Piper Jaffray, eBay (NASDAQ: EBAY) reported a slight upside to the March quarter with U.S. GMV growth of 10% a positive surprise.

Piper Jaffray said that it remains neutral on EBAY but believe shares can drift higher over the next few years given the company's 15% earnings growth trajectory. “PayPal was again a bright spot, with payment volume growing 28% y/y. Our marketplace GMV growth estimates for FY11 and FY12 go to +8% y/y vs. our prior estimates of 6% and 7% previously, while our payment volume growth estimates go to 30% and 28%, up from 26% in FY11 and 25% in FY12 previously. March quarter revenue was $2.55 billion vs. the Street's $2.48B expectation; PF EPS of $0.47 was $0.01 ahead of the Street's $0.46 expectation. FY11 PF EPS guidance of $1.93-$1.97 was inline with the Street's $1.94 expectation going into the report. ”

eBay closed yesterday at $34.03.