Morgan Stanley names eBay top pick and raises target to $132

eBay shares rose 5.5% in late morning trading on Monday after Morgan Stanley elevated the e-commerce company to its top pick in the internet sector. The investment bank raised its price target on the stock to $132 from $127, pointing to rapid expansion in Western live commerce as a key driver of gross merchandise volume.

In a research note led by analyst Nathan Feather, Morgan Stanley estimated that live commerce now accounts for more than 40% of eBay's growth in gross merchandise volume. The bank highlighted that the Western live shopping market has grown more than fivefold over the past two years to reach $27 billion, functioning largely as a digital auction house for secondary items and collectibles.

Survey data cited by the bank revealed that nearly 80% of live commerce buyers resell items, creating a trading cycle that returns inventory to eBay. Morgan Stanley projects that live-influenced merchandise volume could add about four percentage points to annual growth through 2030, which nearly matches current consensus expectations for total volume expansion.

The firm also noted that operating profit expectations have likely bottomed following investments in platform initiatives and acquisitions such as Depop. With easing margin pressure and ongoing market share gains, Morgan Stanley outlined potential for sustained double-digit earnings growth.