Analyst Ratings January 28, 2026

Citizens Sticks With Market Outperform on eBay, Keeps $115 Target as GMV Momentum Persists

Analyst sees upside to Q4 2025 GMV and 2026 growth supported by product improvements and recommerce trends

By Ajmal Hussain EBAY
Citizens Sticks With Market Outperform on eBay, Keeps $115 Target as GMV Momentum Persists
EBAY

Citizens reiterated a Market Outperform rating and a $115 price target on eBay, citing stronger-than-expected gross merchandise volume (GMV) trends in collectibles and luxury resale. The firm expects eBay to beat Q4 2025 GMV estimates and projects at least mid-single-digit GMV growth in 2026, driven by product enhancements and ongoing recommerce demand. The update arrives alongside mixed analyst views and a regulatory probe in France.

Key Points

  • Citizens reaffirmed Market Outperform and a $115 target on eBay, with the stock trading at $95.20 near its 52-week high of $101.15 and a 12-month return of 43.85%. - Sectors impacted: E-commerce, online marketplaces, retail technology.
  • Citizens expects Q4 2025 GMV to exceed expectations, citing stronger demand in collectibles and luxury resale based on first- and third-party tracking; it also forecasts at least mid-single-digit GMV growth in 2026 supported by product improvements. - Sectors impacted: Recommerce, luxury resale, logistics.
  • Product initiatives cited as drivers include Magical Listings, category verticalization of experiences, and enhanced shipping options; Citizens estimates a total addressable market above $500 billion in its focus categories. - Sectors impacted: Software product development, marketplace platforms, shipping and fulfillment.

Citizens Investment Research has reaffirmed its Market Outperform recommendation on eBay Inc. and maintained a $115.00 price target, according to a note published Wednesday. That target sits at the high end of analyst expectations while the stock trades at $95.20, close to its 52-week high of $101.15. Over the past 12 months the shares have returned 43.85%, per InvestingPro data.

In its analysis, Citizens said it expects eBay to top fourth-quarter 2025 GMV projections. The firm pointed to accelerating demand in key categories - notably collectibles and luxury resale - drawing its conclusions from a mix of first-party and third-party tracking inputs.

Citizens also described current company guidance on Q4 2025 profitability as conservative. eBay had previously guided to an approximately 1 percentage point year-over-year and quarter-over-quarter decline in pro forma operating margin for Q4 2025; Citizens expects revenue upside to flow through to improved profitability beyond that guidance. The analyst note highlights eBay's strong unit economics, noting a gross profit margin of 71.64% and an InvestingPro financial health assessment rated as "GOOD."

Looking toward 2026, Citizens flagged a set of product initiatives it views as supportive of sustained GMV expansion. Those items include the roll-out of Magical Listings, further verticalization of category experiences, and enhancements to shipping options. Taken together, the research firm estimates eBay competes across a total addressable market exceeding $500 billion within its focus categories.

Citizens said it has increased conviction that eBay can achieve at least mid-single-digit GMV growth in 2026. The firm attributes that view to persistent recommerce trends that it expects will continue to grow both the buyer and seller populations on eBay's marketplace.

Several other analyst and regulatory developments were noted alongside Citizens' update. eBay reported GMV growth accelerating to 10% in the third quarter, outpacing analyst forecasts. That performance prompted Benchmark to raise its price target to $110 while keeping a Buy rating, reflecting confidence in the company's third-quarter results.

eBay also issued a clarification related to comments from CEO Jamie Iannone on GMV guidance, specifying that the remark applied to the next quarter rather than the next year and aligning the comment with prior guidance.

On the regulatory front, French authorities have opened an investigation into eBay amid suspicions that illicit goods have been offered on the platform. The French Commerce Minister named eBay among six online marketplaces accused of selling prohibited items in France, prompting scrutiny from local regulators.

Meanwhile, BNP Paribas Exane began coverage of eBay with a Neutral rating and a $90 price target. That initiation emphasized eBay's position in global e-commerce but signaled caution about the company's growth trajectory.

The collection of signals presented by Citizens and other market participants paints a picture of robust top-line activity and product-driven momentum counterbalanced by regulatory exposure and mixed analyst perspectives on sustained growth.

Risks

  • Regulatory investigation in France into suspected illicit goods on the platform introduces legal and reputational risk that could affect user trust and operations in that market. - Markets impacted: E-commerce, online marketplaces.
  • Divergent analyst views - exemplified by BNP Paribas Exane's Neutral initiation at a $90 target - highlight uncertainty about eBay's longer-term growth trajectory and could influence investor sentiment. - Markets impacted: Equity markets, technology sector.
  • Company guidance pointing to an approximate 1 percentage point decline in pro forma operating margin for Q4 2025 implies near-term margin pressure; Citizens believes guidance is conservative, but the margin outlook remains an uncertainty. - Markets impacted: Corporate profitability metrics, investor expectations.

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