eBay (EBAY) Shares Higher as Bernstein Upgrades to Outperform

Shares of eBay (Nasdaq: EBAY) are trading higher today on the back of an upgrade from an analyst over at Sanford Bernstein. The stock most recently traded at $22.81, up 4.5% from yesterday's closing price.

The firm raised its investment rating on eBay from Market Perform to Outperform, also boosting its price target on the stock from $24 to $28. Bernstein sees a recovery at the online auctioneer: the core Marketplaces segment "is finally turning around", auto sales are returning to less-depressed levels, and growth of the company's user base continues at a steady clip worldwide "including both on and off eBay."

Bernstein also likes the recent announcement that eBay will divest its Skype unit, a move which should boost earnings next year, according to the firm's research note. Further, Bernstein predicts that a weakening U.S. dollar and an earlier-than-expected recovery in Europe could lift volumes.

The firm's new price target represents potential upside of about 23% from current levels.

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