BGC Capital's Outlook on eBay (Nasdaq:EBAY)

The response to eBay's (Nasdaq:EBAY) has been across the board since they beat expectations for the last quarter, with some companies thinking they need to be dumped quickly, to others like BGC Capital, who think they're a buy.

BGC says. "eBay remains well positioned for mobile and the blurring of offline and online transactions with acquisitions such as Red Laser and Milo and a strong suite of mobile applications that have been downloaded over 30 million times according to the company. We also highlight that the marketplace is outperforming in certain areas: 1) top rated sellers who account for 38% of GMV had same-store-sales of 12% YoY, outpacing ecommerce, and 2) the U.K continues to be a showcase region for eBay with sold items up 25% and GMV up 19% YoY, growing faster than market rates and taking share from Amazon according to the company."

BGC added that they "see eBay shares at a reasonable valuation given 1) its position as the world’s largest online marketplace 2) that the marketplace turn-around is posed to gain steam in 2011 in our opinion, 3) that PayPal remains a growing asset 4) that we expect a Skype IPO could occur in 2011 given that the company has already files an S-1 registration statement presenting a window for eBay to monetize its 30% stake, 5) that the company has positioned itself well for the blurring of offline and online retail with its RedLaser and Milo acquisitions, and 6) that it is a leader in mobile commerce with $2B in transaction value that tripled from 2009, and should double to $4B in 2011 according to the company."

The full year 2011 revenue outlook for eBay was raised from $10.2 billion to $10.4 billion and EPS estimates from $1.91 to $1.97.

BGC maintains their "Buy" rating on eBay (ebay), which closed Thursday at 30.78, gaining $1.68, or 5.76 percent. BGC has a price target on eBay of $35.