Morgan Stanley Sees eBay Q2 EPS Beating The Street

Morgan Stanley’s David Joseph Tuesday morning asserted that negative sentiment on eBay (EBAY) is “overdone”, and that 2008 EPS estimates could move higher.

Joseph, who repeated his Overweight rating on the stock, sees “upside” to current Q2 estimates. The Street is looking for revenue of $2.16 billion and EPS of 41 cents; he says the company is “tracking” to $2.2 billion and 43 cents. He sees upside in the quarter driven by international, PayPal and Skype. Joseph asserts that the company’s valuation is “attractive,” at about 13x his calendar 2009 EPS estimate.

Asserts Joseph: “In our experience, negative sentiment + potentially conservative consensus estimates + attractive valuation make for outperformance and we believe that may be the case for eBay going into the Q2 earnings call” on July 16.”

Tuesday, eBay is up $1.43, or 5.3%, to $28.35.