NEW YORK (TheStreet) -- Shares of eBay (EBAY) are rising, up 1.06% to $55.39 in pre-market trading on Monday, after analysts at Stifel Nicolaus upgraded the online auctioning site to "buy" from "hold" with a $65 price target, calling the company the "real deal" in the e-commerce sector.
The firm said in a note that they, "envision a $2:$1 risk/reward on a base case and $3:$1 on a bull case based on what we believe are a reasonable set of assumptions and comparable." The assumptions refer to the spin-off of its payment service division, PayPal within the next nine months.
The firm believes the spin-off will allow both eBay and PayPal to invest while operating profits grow faster than revenue.
Must Read: Warren Buffett's 25 Favorite Stocks
Analysts added that they think eBay's marketplaces gross margin will see acceleration in the second half of 2015.
Separately, TheStreet Ratings team rates EBAY INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate EBAY INC (EBAY) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in stock price during the past year, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."