eBay (EBAY) Results Expected To Be In Line With Expectations

eBay Inc. (NASDAQ: EBAY) is expected to post 4Q revenue at $2269M and $0.41 EPS, in line with estimates.

Modest GMV growth in the US due to easier comps and improved conversion rates will aid revenue growth, with eBay Marketplace transaction revenues expected to grow at 16% Y/Y, Payments transaction revenue at 15% Y/Y and Skype transaction revenues at 32% Y/Y. KBRO Kaufman Bros. has maintained its ‘Buy’ rating based on a more stable marketplace performance, potential for acceleration in 2010 and beyond with ongoing user experience and seller experience, and an attractive valuation of 10x 2010 FCF, giving a price target of $29 per share.