Deutsche Bank's (NYSE:DB) Outlook on eBay (Nasdaq:EBAY)

Saying eBay's (Nasdaq:EBAY) recent beat was based on a lower tax rate and the strength of PayPal, Deutsche Bank (NYSE:DB) sees downside risks on the shares.

Deutsche said they believe "...little has changed for the company's competitive positioning or core marketplace business trends (despite upside in 4Q)."

Deutsche added, "GMV growth was a modest 4% vs. US e-commerce growth of 11% and key intl markets growing in the mid-to-upper teens, largely confirming the continued share losses in key geographies. In ‘11, a combination of higher marketing spend (to drive demand) and tough comps are likely to limit operating profit growth. Underlying marketing efficiency is dropping, & more costly demand likely slows GMV growth. Upside on ‘11 guidance vs. street ests was largely due to acquisitions & lower tax rate."

Deutsche boosted their first quarter 2011 outlook from $2.34 billion in revenue and EPS of $0.44 to $2.44 billion in revenue and EPS of $0.45. Full year 2011 EPS increased from $1.72 to $1.85 and revenue outlook boosted from $9.6 billion to $10.15 billion.

Deutsche maintains their "Sell" rating on eBay (ebay), which closed Thursday at 30.78, gaining $1.68, or 5.76 percent. Deutsche has a price target of $22 on eBay.