NEW YORK (TheStreet) -- Shares of eBay (EBAY) - Get Report were rising in mid-morning trading on Thursday as Deutsche Bank boosted its rating on the stock to "buy" from "hold."

The firm has a $40 price target on shares of the San Jose, CA-based e-commerce company.

"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," Deutsche Bank wrote in an analyst note.

Online travel company Expedia (EXPE) went from a $6 billion market cap to over $30 billion in the 24 months coming out of its re-platforming in 2011, if you add its spin-off of TripAdvisor (TRIP), the firm noted.

"While we don't expect a 5-bagger at EBAY, it could certainly outperform the group over the next 2 years," Deutsche Bank added.

"Sentiment is muted compared to the crowded best-of-breed names like Amazon.com (AMZN), Facebook (FB) and Alphabet (GOOGL), and EBAY trades at a 8% FCF yield on conservative 2018 numbers," the firm said.

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on eBay stock.

The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share and increase in net income.

But the team also finds weaknesses including weak operating cash flow and generally higher debt management risk.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: EBAY

Image placeholder title