Famous corporate raider Carl Icahn's new target is Ebay Inc. (EBAY). He complained about Ebay CEO John Donahoe's bad timing on selling Skype and cost investor $4B and is pushing for a PayPal spinoff. Omega Advisors's Leon Cooperman supports this idea. Icahn nominated 2 of his people for Ebay board member but have been rejected by Ebay. Fights between Icahn and Ebay goes on. Icahn is pressuring Ebay to enhance share holder value and will likely pressure Ebay to do something good for share holder eventually. These kind of actions will likely help pushing up Ebay's stock price near term. In addition Baird analyst maintain Outperform rating and $65 price target for eBay. Baird believes
downside risk from current levels is likely limited by the high value of
PayPal and
Carl Icahn’s recent activism.
Technically, EBAY chart is extremely bullish as it broke out of a 14 month trading range between 48 and 58. Monthly chart is showing a bullish Cup and Handle breakout pattern. The stock is set up to make all time high near term. Using trading range break out measurement, the stock's immediate upside target is 68. Using Continuation Up pattern measurement, longer term target is around 90.
Disclaimer:
The above write up represents the opinion of the author only. You are responsible for
your own risk when taking position in these stocks. Author of this blog
may already own position in the mentioned stocks.
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