eBay should consider going private, says Baird
As previously reported last night, Baird analyst Colin Sebastian kept his Outperform rating and $39 price target on eBay after the announcement of an activist stake by Elliott Management, saying the main points of the fund's letter are "worthy of the board's review". In addition to considering unlocking the value of StubHub/ Classifieds, refocusing the core marketplace, and reallocating expenses, the analyst contends that the company should mull "go-private options" to help execute a restructuring without the scrutiny that comes with being a public entity. Benedict further states that eBay has "enormous opportunity outside of retail" to differentiate itself, adding that the review could provide further potential catalysts. This note corrects a prior version that incorrectly listed Peter Benedict as the analyst who covers eBay at Baird.