eBay Inc (EBAY) has recently faced more pressure from activist shareholder Starboard Value LP to sell eBay Classifieds Group. According to Starboard, current progress is not enough to increase shareholder value.
eBay shares closed lower for the fifth time in the past ten trading sessions on NASDAQ on Wednesday. The stock went down 0.76% ($0.28) to $37.13, after touching an intraday low at $36.62 and an intraday high at $37.45.
Shares of eBay Inc have risen 2.81% so far in 2020 compared with a 3.22% gain for the benchmark index, S&P 500 (SPX).
In 2019, eBay’s stock went up 28.64%, thus, it again underperformed the S&P 500, which registered a 28.88% gain.
“To achieve the optimal outcome, we believe Classifieds must be separated, and a more comprehensive and aggressive operating plan must be put in place to drive profitable growth in the core Marketplace business,” Starboard said in a letter to eBay Inc’s board, cited by Reuters.
eBay will provide an update on its Classifieds Group later in 2020. Elliott Management Corp has valued that business within the range of $8 billion to $12 billion.
In 2019, eBay agreed to sell StubHub, its ticketing division, in a $4.05 billion all-cash deal, as it gave in to pressure from Starboard Value LP and Elliott Management Corp.
Analyst stock price forecast and recommendation
According to CNN Money, the 28 analysts, offering 12-month forecasts regarding eBay Inc’s stock price, have a median target of $38.00, with a high estimate of $49.00 and a low estimate of $30.00. The median estimate represents a 2.36% upside compared to the closing price of $37.13 on February 5th.
The same media also reported that at least 21 out of 34 surveyed investment analysts had rated eBay Inc’s stock as “Hold”, while 8 – as “Buy”. On the other hand, 3 analysts had recommended selling the stock.