Updated from Wednesday, June 29 with Citigroup upgrade

NEW YORK ( TheStreet) -- eBay ( EBAY) is moving higher Thursday morning, following Wednesday's ruling from the Federal Reserve to cut debit-card fees to 21 cents.

While the cut was less than anticipated, shares of eBay were gaining nearly 5% shortly after the opening bell.

Citigroup analyst Mark Mahaney upgraded eBay to "buy" Thursday, calling the company "the best value opportunity in the Large Cap Internet Sector." Citigroup's price target was bumped higher to $38 from $36, representing upside potential of 16% from Thursday's opening price.

In his research report, Mahaney says that with the overhang of the Durbin Amendment regulations removed and the stock off 10% from recent highs, this is a valuation upgrade.

Ultimately, the ruling is expected to help eBay's PayPal unit.

The National Retail Federation, however, expressed disappointment on the final ruling, calling it a "major loss for American consumers."

Previously, the debit card swipe fee was at a rate of 1% to 2% per transaction, or about 44 cents on an average retail purchase. While it will be replaced by a fee of 21 cents per transaction, this is still significantly higher than the 12 cents the Fed originally proposed in December 2010.

"We are extremely disappointed that the Federal Reserve chose to be influenced by special interests and ignored the will of Congress and American consumers. While the rate will provide modest relief, it does not go far enough," NRF President and CEO Matthew Shay said in a statement.

-- Reported by Jeanine Poggi in New York.

Follow TheStreet.com on Twitter and become a fan on Facebook.