eBay, Inc. (Nasdaq: EBAY) rose 7 3/4 to 61 3/16, and Priceline.com (Nasdaq: PCLN) gained 1 to 39 7/16 after Credit Suisse First Boston began coverage of the stocks Friday with strong buy ratings. CSFB analyst Heath Terry put a $72 12-month target on eBay, and a $45 target on Priceline.
Terry said he expects Priceline to post a loss of 12 cents per share this year on revenue of $1.4 billion, and to see a 13 cent per share profit in 2001 as revenue rises to $1.8 billion.
eBay, said Terry, has a head start on competitors in the online personal auction industry, which will allow it to “compete in most any market” outside the United States. “We believe the network effect of the most buyers attracting the most sellers, and vice versa, will continue to insulate eBay from competition,” said Terry.