Keefe, Bruyette & Woods Comments On eBay Q3 Results

Keefe, Bruyette & Woods maintained an Outperform rating and $65 price target on eBay Inc (NASDAQ: EBAY) in a report issued Thursday.

Analysts led by Sanjay Sakhrani lowered "2014 EPS estimate to $2.95 (from $2.97) to reflect slower growth at eBay as well as f/x headwinds, but are maintaining our 2015 and 2016 EPS estimates of $3.33 and $3.72, respectively."

Sakhrani noted that "3Q14 presented a number of challenges to companies from a macro and f/x perspective. For EBAY, this was compounded by additional issues unique to itself such as SEO and data breach impacts. Overall, we think that the company managed to post relatively resilient operating metrics for the quarter, though the outlook is somewhat softer than expected."

The report concluded that at "current levels, we believe that there is a fair amount of negativity baked into the shares and would be buyers on any weakness as ultimately, in our view, [the pending] separation of [eBay and PayPal] is likely to unlock value."

eBay Inc recently traded at $46.67, down 7 percent.