Wells Fargo Analyst Downgrades eBay to Underweight: The Key Drivers
AI Market Summary
Wells Fargo analyst Ken Gawrelski downgraded eBay to \u0022underweight\u0022, cut the price target to $92, and reduced 2027 EPS estimates by 10%, well below consensus. The note flags Depop marketing spend as a Q3 EPS headwind (~$0.15) and anticipates weaker guidance in August. This raises near-term earnings risk and can weigh on investor positioning into the guidance event.
Impact level
● Medium
Affected assets
NCSKEBAY2USD/USDT+2.08%
AI Insight · NCSKEBAY2USD/USDTAI Insight
▼ Bearish
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Wells Fargo senior analyst Ken Gawrelski cut his rating on eBay to "Underweight" and lowered his price target to $92, implying roughly 5% downside from current levels. He also reduced his 2027 earnings-per-share (EPS) forecast by 10%, putting his estimate well below the broader Wall Street consensus.
Gawrelski said higher marketing spend tied to Depop is expected to weigh on eBay's third-quarter results, trimming EPS by about $0.15. He also anticipates management will issue weaker-than-expected guidance in August.
