EBay Sees J.P. Morgan Price Target Increase With Looming PayPal Split

By Trey WilliamsMarketWatch Pulse

With PayPal set to split from eBay Inc. and begin trading around July 6, J.P. Morgan Chase analysts have "modestly" increased their target price for eBay to $64 from $60. J.P. Morgan analyst Doug Anmuth wrote in a note on Monday that the slight raise is to account for both PayPal's and eBay's valuation might look like following the split. Anmuth said he has a valuation of $38 billion on PayPal with a $44 billion market cap and a post-spin stock price of $36. His valuation of eBay sits a little lower at $30 billion, with a market cap of $33 billion. Anmuth is expecting eBay to trade at $29 after the split. Ebay shares opened at $60.66 on Monday, according to FactSet, and were up 8% in the year-to-date.

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