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|  | FEBRUARY 9, 2005
 WORD ON THE STREET Merrill Upgrades eBay Analyst Justin Post says he sees less volatility in its earnings than the online auction retailer's eCommerce competitors Merrill upgrades eBay (EBAY ) to buy from neutral. Analyst Justin Post says eBay is now more an attractive valuation with a 23% upside to $96 target. He sees less potential volatility from eCommerce earnings per share reports (Amazon, Shopping.com, and Overstock), and less potential selling pressure from momentum investors. By fourth-quarter 2005 Post sees early visibility on returns from incremental PayPal investment, more effective advertising, opportunity for near-term year-over-year margin improvement, and easier revenue growth comps. He prefers eBay to Amazon.com due to a stronger competitive moat, vs. offline commerce, faster revenue growth, and better near-term visibility on returns from investment spending.  All of the views expressed in this research report accurately reflect the research analyst's personal views regarding any and all of the subject securities or issuers. No part of analyst compensation was, is or will be, directly or indirectly related to the specific recommendations or views expressed in this research report. Standard & Poor's Regulatory Disclosure Any advice, analysis, or recommendations contained in articles labeled "Insight from Standard & Poor's" reflect the views of Standard & Poor's, which operates separately from and independently of BusinessWeek Online. It is possible that BWOL may from time to time publish information that is not consistent with advice, analysis, or recommendations that are published by Standard & Poor's. Standard & Poor's and BusinessWeek Online are each units of The McGraw-Hill Companies, Inc. Get BusinessWeek directly on your desktop with our RSS feeds.  Add BusinessWeek news to your Web site with our headline feed. Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story or video. To subscribe online to BusinessWeek magazine, please click here. Learn more, go to the BusinessWeekOnline home page  | | |
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