EBay Inc (NASDAQ:EBAY) shares are trading higher Monday. Morgan Stanley named the stock a top pick. Here’s what you should know.

Morgan Stanley Names eBay a Top Pick With $132 Price Target

Morgan Stanley elevated eBay to a Top Pick and kept an Overweight rating on Monday, with analyst Nathan Feather lifting the price target to $132 from $127.

Feather noted that gross merchandise volume (GMV) is rising about 14% on an FX-neutral basis, and that investors have yet to pin down the cause. Feather’s answer is live commerce, a $27 billion Western market that has grown more than fivefold in two years. Feather estimates Live generates around 9% of eBay’s GMV and at least 40% of the company’s expansion.

Western live commerce resembles an auction house on camera, where hosts sell used, discounted or rare items, mostly collectibles and fashion. Live attracts fast-turn resellers, who buy bargains in quick auctions and relist them on eBay, so items change hands more often and GMV climbs. An AlphaWise survey found that 79% of Live buyers resell what they buy, and one in four does so primarily.

Feather traces the benefit to three sources: about $2 billion from eBay’s own Live platform, $5 billion from items cycling back through eBay and $1 billion from shoppers who discover regular listings through Live. eBay has reported that buyers who start live shopping in collectibles spend about 70% more.

Analyst Raises Estimates, Sees Catalysts Ahead

Feather expects Live-influenced GMV to triple from $8 billion to $24 billion by 2030, a 30% annual pace. That growth alone would add roughly 4 points to eBay’s yearly GMV growth, nearly all of what consensus expects.

The Morgan Stanley analyst raised the 2026 through 2030 GMV growth forecast to about 6.5% from 5.8%. Feather now models 10% annual EBIT growth, which leaves the 2028 GMV estimate 5% above consensus and the EBIT estimate 7% above.

Catalysts, Feather said, include initial fiscal 2027 EBIT guidance that beats low expectations and more upbeat alternative GMV data as eBay laps tougher comparisons in the first half of 2027.

Wells Fargo analyst Ken Gawrelski on Monday maintained an Underweight rating on eBay, but shaved the price target to $91 from $92.

Across Wall Street, Benzinga’s consensus data points to a Buy rating on eBay and an average price target of $115.78, with the lowest target at $75.

EBAY Shares Are Rising

EBAY Price Action: EBay shares were up 3.51% at $116.13 at the time of publication on Monday. The stock is approaching its 52-week high of $119.31, according to Benzinga Pro.

Read Also: What's Going On With Cable One Stock Monday?

Image: Shutterstock