eBay (EBAY) Might be Best Story in Internet, Says Deutsche Bank; Analyst Raises Rating to 'Buy'

Deutsche Bank upgraded eBay (NASDAQ: EBAY) from Hold to Buy with a price target of $40 (prior $30). Analyst Ross Sandler said EBAY might be the best story in Internet heading into 2017.

"We think EBAY is in the latter stages of its re-platforming, which is the time period where select internet stocks historically tend to generate the most alpha. Expedia went from a $6B market cap to over $30B in the 24 months coming out of its re-platforming back in 2011 (if you add the TRIP spin) and while we don’t expect a 5-bagger at EBAY, it could certainly outperform the group over the next 2 years. Sentiment is muted compared to the crowded best-of-breed names like AMZN, FB and GOOGL, and EBAY trades at a 8% FCF yield on conservative 2018 numbers," said Sandler.

The analyst added, "In summary, there are few out-of-favor accelerating-growth stories with upside to estimates and a reasonably low valuation, from that perspective EBAY might be the best story in Internet heading into 2017."

For an analyst ratings summary and ratings history on eBay click here. For more ratings news on eBay click here.

Shares of eBay closed at $31.85 yesterday.

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