Morgan Stanley Eyes eBay at $121: Stock Momentum Builds

Morgan Stanley has elevated its price target for eBay Inc. shares to $121 from $117, while reiterating an Overweight rating. This move reflects the stock's robust performance, trading near its 52-week high and having surged 54% over the last year. The firm's increased estimates for gross merchandise volume and adjusted EBIT in 2026 and 2027 are driven by eBay's updated growth guidance and accounting changes.

In the first quarter of 2026, eBay reported earnings per share of $1.66, surpassing the anticipated $1.58, with revenue also exceeding forecasts. This strong financial performance has prompted other financial institutions, including Evercore ISI, Goldman Sachs, and Stifel, to adjust their price targets upward. The company's significant gross profit margin highlights its pricing strength, though some analyses suggest the stock may be overvalued relative to its fair value.