UPDATE 1-RESEARCH ALERT-Analysts cut eBay price target

(Recasts; adds details, share movement)

Oct 7 (Reuters) - At least three brokerages cut their price target on Internet auction leader eBay Inc (EBAY.O) as they expect the acquisitions of online payment and classifieds companies to weigh on the company in near term.

Shares of the company were trading down 2 percent to $17.52 before the bell. They had closed at $17.89 Monday on Nasdaq.

EBay said on Monday it would buy U.S. online payments company Bill Me Later for about $945 million and Danish online classifieds businesses Den Bla Avis and BilBasen for $390 million. [ID:nN06375217]

Jefferies & Co Inc analyst Youssef Squali said with marketplace growth slumping, eBay management is doubling down on payments and classifieds businesses through acquisitions.

Banc of America Securities analyst Brian Pitz said, "While the acquisitions fit with management's strategic goals, both are dilutive and we expect them to weigh on shares near term."

Pitz cut his price target by $8 to $29 on the stock, but maintained his "buy" rating.

Barclays Capital analyst Douglas Anmuth said the Bill Me Later business could modestly raise the risk profile of eBay's overall payments business as it heads into a tougher consumer-credit environment.

"We believe that difficult economic conditions in eBay's largest markets -- the U.S., Germany, and the UK -- will make GMV (gross merchandise volume) reacceleration difficult in 2009," Anmuth said.

The analyst cut his price target by $9 to $22 on the stock, but kept his "equal weight" rating.

Jefferies' analyst Squali said, "We view the ensuing near-term dilution as an incremental negative but expect the long-term impact to be positive, given eBay's execution to-date in these segments and its leadership position in these large markets."

Squali cut his price target to $32 from $35 on the stock, but maintained his "buy" rating. (Reporting by Dilipp S. Nag in Bangalore; Editing by Anil D'Silva)