Retail giant eBay could see big gains ahead as the resale market heats up, Deutsche Bank said Tuesday. Analyst Lee Horowitz initiated coverage of eBay with a buy rating, saying in a note to clients on Tuesday that investors are largely underappreciating the firm's positioning in the resale market. Despite disappointing guidance for fiscal year 2022, eBay has better executive leadership after the arrival of CEO Jamie lannone, and it is better positioned to take advantage of growth in the resale market, Deutsche said. "We believe the numbers screen as highly conservative and now reflect a worst-case outcome," Horowitz wrote. "We believe it is more likely that 2H22 growth comes in ahead of expectations." Growth in eBay's luxury resale business in core European markets, as well as the firm's expansion into the auto parts and accessories market will drive "outsized share gains" compared to expectations, the note said. The online retailer was issued a $64 price target, representing 22.8% potential upside from where shares closed on Monday. Shares of eBay are down nearly 22% year to date. — CNBC's Michael Bloom contributed to this report.
Signage at eBay headquarters in San Jose, California, U.S.
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Retail giant eBay could see big gains ahead as the resale market heats up, Deutsche Bank said Tuesday.