The firm upgraded the online auctioning site to "buy" from "hold" and issued a higher price target of $70 from its prior $60 price objective.
eBay was upgraded ahead of its PayPal spin-off, as analysts say the payment service is battling competitive concerns better-than-expected.
The firm also noted that eBay's growth rate challenges are easing. Axiom added that eBay has been stuck within a range of between $55 to $60 per share this year, but comps seem to be getting easier in the second half of the fiscal year.
Last September, the e-commerce giant announced its plan to separate the online marketplace from PayPal, its growing mobile payment processing unit it bought back in 2002.
The move followed several months of pressure from activist investor Carl Icahn for the two divisions to split since the company's traditional e-commerce business had been slowing.
San Jose, Calif.-based eBay is a global technology company that enables commerce through reportable segments including marketplaces, payments and enterprise.
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 a few notable strengths, 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 solid stock price performance, compelling growth in net income, revenue growth, notable return on equity and reasonable valuation levels. We feel its strengths outweigh the fact that the company shows weak operating cash flow."