EBay Inc.'s stock shot up to an all-time intraday high Thursday, after the online marketplace was upgraded at Deutsche Bank, which cited potential for accelerating growth and outperformance. Analyst Ross Sandler raised his rating to buy, after being at hold for at least the last three years. He lifted his stock price target to $40, which is 23% above current levels, from $30. Sandler said he believes eBay is in the latter stages of its re-platforming, which tends to be the time when select internet stocks have historically outperformed their peers by the widest margin. In addition, he said sentiment is "muted" compared with other top internet names. "In summary, there are few out-of-favor accelerating-growth stories with upside to estimates and a reasonably low valuation, from that perspective [eBay's stock] might be the best story in internet heading into 2017," Sandler wrote in a note to clients. The stock rose as much as 4.2% earlier to a record intraday high of $33.19 before paring some gains. The stock was up 1.9% in afternoon trade, but was below the Sept. 8 record close of $32.70. It has now run up 18% year to date, while the First Trust Dow Jones Internet Index ETF has gained 8.6% and the S&P 500 has advanced 5.3%.
Copyright © 2016 MarketWatch, Inc.
Continue Reading Below