) to strong buy from buy.
Analyst Jeetil Patel believes eBay's U.S. business should continue to grow by 35%-55% year over year in the coming quarters, driven by listings gains, increased pricing, and stronger-than-expected gross merchandise sales. He says the company should benefit from enterprises embracing eBay as a fourth and alternative distribution channel, as well as an economic recovery in the second half of 2002 (in terms of increase in demand, and higher listing-to-sale conversion rates).
Patel thinks eBay's international expansion strategy is ramping ahead of expectations. He sees $0.72 2002 EPS, $1.55 billion in 2003 revenue, and $1.08 EPS. He has an $80 12-month target.