Markets & Finance

Goldman Bullish on eBay

Goldman Sachs issued a bullish report on online auction company eBay (EBAY). The shares are on Goldman's recommednded list.

Analyst Anthony Noto thinks there is at least 30% upside based on his discounted cash flow and p-e to growth analysis. He sees an acceleration in its U.S. business in the first quarter. He remains comfortable with his first quarter estimates. Most importantly, he believes the U.S. business, ex-advertising, will grow faster on a year-over-year basis than it did in the fourth quarter as cartegories where goods carrly larger average selling prices -- such as computers, consumer electronics, and autos -- continue to increase as a percentage of the sales mix.. Noto thinks domestic growth in the latter part of 2002 will benefit from Fortune 500 companies continuing to sell online. He adds that eBay's international operations continue to gain significant traction; the company is No. 1 in every market except Japan, which it is exiting.

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