EBay Inc (NASDAQ:EBAY) shares have received an upgrade by analysts at Topeka Capital. Their previous rating on the stock was Hold; however, in a report issued to investors this morning, Victor Anthony upgraded the stock to Buy and raised the price target to $65 per share from $54 per share.
According to Anthony, the firm upgraded shares of eBay Inc (NASDAQ:EBAY) because they believe the company’s management, “has successfully demonstrated their ability to executive against planned three year targets in 2009 and 2011.” The analyst said because of the eBay Inc (NASDAQ:EBAY)’s success in meeting its past goals set for the company; the analyst said the company appears to be on track to meet its current target, which aims to double its payments business and push its e-commerce business almost up to near mid-teens growth.
Topeka Capital predicts that eBay’s core e-commerce business will keep benefiting as more and more consumers move toward Internet and mobile payments. They also believe that PayPal alone can push at least 20 percent annual top-line growth “for the foreseeable future.” EBay has taken some important steps over the last year to enhance its growth, like launching same day shipping. Also the company’s financials are strong, so it’s not difficult to see why the company received an upgrade from Topeka Capital.
Today CNN reported on eBay’s analyst day, which was last week. The network said the company gave “analysts and investors a compelling case to be bullish on its future.” Topeka Capital has apparently taken the company up on its push after analyzing the new data provided by the e-commerce giant.
Shares of eBay Inc (NASDAQ:EBAY) rose 1 percent in early Tuesday morning trades. Today’s gains come on the heels of even more gains over the last few trading days.