The firm cited the PayPal spin off for the online marketplace's increased price target.
On Friday, eBay's board of directors approved the spin off of payment processing company PayPal as a separate public company, according to MarketWatch.
"eBay and PayPal are two great, special businesses," said eBay CEO John Donahoe. "I am confident that eBay and PayPal each have the right leadership team, strategy, structure and operational discipline to create sustainable, long-term value for stockholders and deliver great opportunities and experiences for customers worldwide."
The separation will take place on July 17, and both companies will become independent and publicly traded. PayPal will trade on the New York Stock Exchange under the ticker PYPL, Fortune reports.
In Monday's pre-market trading, shares of eBay are declining 0.34% to $60.83.
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."