Shares of eBay Inc. (EBAY) closed solidly higher after the online auction service reported a fourth quarter earnings per share of $0.09 compared to $0.02 a year ago. Deutsche Banc Alex Brown subsequently raised its estimates and reiterated its buy rating on the stock.
Analyst Jeetil Patel said the company continues to execute well despite a tough economy. He also noted fundamentals remain robust, and the outlook is positive as the company moves to a global platform, which will help shield the company from any market weaknesses. Patel also said the company is in a position to establish itself as the fourth alternative distribution channel for major retailers and vendors.
He raises his 2001 revenue estimates to $665 million from $630 million, and his EPS estimates to $0.40 from $0.38. Patel also sees upside potential to estimates, and sees a 75% annual EPS growth over next three years. The analyst raised his stock price target to $60 from $57.