eBay Price Target Boosted by UBS Ahead of Q2 Earnings Report

eBay's Q2 earnings report is expected to show strong GMV and earnings growth, with UBS forecasting 2% US GMV growth and flat international GMV for 2026. The firm raised its price target to $82 from $73, but maintained its 'Neutral' rating due to limited valuation upside. eBay's focus on categories like collectibles and advertising initiatives are expected to drive growth.

eBay (NASDAQ: EBAY) is set to report its Q2 earnings this Wednesday after market hours. Analysts are expecting the company to report a 2.8% year-over-year (YoY) revenue growth, reaching $2.65 billion [1]. This forecast is an improvement over the 1.3% increase recorded in the same quarter last year. Adjusted earnings per share are expected to come in at $1.30.

The company has shown resilience in recent quarters, with revenue of $2.59 billion in Q1 2025, up 1.1% YoY [2]. While this was a slower quarter compared to previous periods, eBay's focus on categories like collectibles and advertising initiatives is expected to drive growth. eBay's Gross Merchandise Volume (GMV) grew to $18.8 billion in Q1 2025, showing a 2% increase on an FX-Neutral basis [2].

The majority of analysts covering the company have maintained their estimates over the last 30 days, suggesting they anticipate eBay to stay the course heading into earnings [1]. However, eBay has missed Wall Street’s revenue estimates three times over the last two years, which may cause some uncertainty among investors.

UBS has raised its price target to $82 from $73, but maintained its 'Neutral' rating due to limited valuation upside. The firm expects 2% US GMV growth and flat international GMV for 2026 [3]. This indicates a cautious approach to eBay's valuation, despite the positive outlook on GMV growth.

eBay's peers in the consumer internet segment have shown strong performance. Alphabet delivered year-on-year revenue growth of 13.8% in Q2 2025, beating analysts' expectations by 2.6% [1]. Coursera reported revenues up 9.8%, topping estimates by 3.7% [1].

eBay's recent initiatives, such as the launch of its new checkout solution for vehicle transactions and the appointment of a resident stylist, also indicate a focus on innovation and growth. These moves, along with the company's commitment to circular fashion and AI technologies, could drive future performance.

Investors should closely monitor eBay's earnings report and subsequent market reaction to gauge the company's performance and future prospects.

References:
[1] https://finance.yahoo.com/news/expect-ebay-ebay-q2-earnings-030318773.html
[2] https://www.stocktitan.net/news/EBAY/
[3] UBS Analyst Report (Date: 07/02/2025)