EBAY - UBS slashes estimates on eCommerce names as recession risks rise
In a lengthy research note outlining multiple market scenarios, UBS advised clients to temper overly bullish outlooks on numerous eCommerce stocks. According to the bank’s research, risks of a recession have doubled from 13% to 26% in recent months with a significant slowdown in consumer spending anticipated even if full recession is averted. Indeed, retail sales growth reportedly slowed from 34% to 28% from April to May. UBS expects there could be further deterioration from this point as pessimistic data continues to be printed. “Our analysis suggests even in a mild slowdown scenario, sales for eCommerce companies within our coverage could come in about 5-20% below Street consensus in 2023, depending on the company,” he told clients on Tuesday. “We take the opportunity to reduce our expectations for all the names.” Amazon (NASDAQ:AMZN), Etsy (NASDAQ:ETSY), The RealReal (NASDAQ:REAL), StichFix (NASDAQ:SFIX), ContextLogic Inc (WISH), and MYT Netherlands Parent (MYTE) were among
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UBS slashes estimates on eCommerce names as recession risks rise