Yahoo Finance Morgan Stanley Flips From EBay’s Biggest Bear to Top Bull on AI
(Bloomberg) -- EBay Inc.’s embrace of artificial intelligence has turned the stock’s most bearish analyst into its biggest fan, with Morgan Stanley seeing a further 25% gain for the shares over the next year.
Most Read from Bloomberg
Record Rainfall in Dubai? Blame Climate Change, Not Cloud Seeding
Red Lobster Considers Bankruptcy to Deal With Leases and Labor Costs
“We believe eBay is best-positioned to capture upside from generative AI in 2024,” the bank’s analyst Nathan Feather wrote in a note, double-upgrading the stock to overweight. Feather’s new price target of $62, up from a previous $35, makes him the most bullish analyst on the Street, according to data compiled by Bloomberg.
Ebay shares are up 13% this year on hopes job cuts can revive profits against a tricky economic backdrop. Morgan Stanley is positive on the company’s “strategy evolution” following a boost during the pandemic-era lockdowns, and sees eBay’s focus on AI features driving growth.
Feather assumed coverage of eBay as Morgan Stanley’s lead analyst in February with an underweight rating. He recommends a pair trade with peer Etsy Inc. as the valuation gap between the two narrows. Ebay’s shares rose 3.5% in US premarket trading following the upgrade, while Etsy dropped 3.7% as Morgan Stanley cut the stock to underweight.
--With assistance from James Cone and Subrat Patnaik.
Most Read from Bloomberg Businessweek
What Really Happens When You Trade In an iPhone at the Apple Store
Aging Copper Mines Are Turning Into Money Pits Despite Demand
Rents Are the Fed’s ‘Biggest Stumbling Block’ in Taming US Inflation
The AI Chatbot That Could Transform Business School Accreditation
©2024 Bloomberg L.P.
