EBay Inc. shares slid 1.2% in premarket trade Tuesday, after Stifel downgraded the stock to hold from buy and said it believes the spinoff of the company's payment processor PayPal is priced in. EBay shares are trading 11% off Stifel's fair value estimate of $31, analysts wrote in a note. "Prior to the separation, we recommended eBay shares into the spin under the premise it would unlock value in each entity," said the note. "At current levels, the limited upside potential to our fair value estimate supports a hold rating." EBay shares have gained 21% in the year so far, while the S&P 500 is up 3.3%.
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