11:50 AM EST, 12/09/2024 (MT Newswires) -- eBay ( EBAY ) has stabilized its gross merchandise volume growth after a period of instability and decline following the pandemic, Wedbush said in a note Monday.

The company is aiming for sustainable long-term growth by focusing on specific product categories, investing in key geographic areas and supporting its platform with new innovations and artificial intelligence, the investment firm said.

Gross merchandise volume is expected to grow slightly faster in the medium term as eBay ( EBAY ) increases the share of focus categories from around 30% to 50% and expands its efforts in the UK and Germany, Wedbush analysts noted.

Wedbush said its financial model shows mid-single-digit earnings growth over the next five years, supported by higher profit margins and share buybacks as eBay ( EBAY ) continues to return money to shareholders.

eBay's ( EBAY ) long-term strategy and how it uses its money are believed to be strong, but a few short-term events could significantly boost the stock price as eBay's ( EBAY ) shares are priced lower than its competitors, according to the note.

Wedbush began coverage at neutral for eBay ( EBAY ) with a $70 price target.

Shares of eBay ( EBAY ) rose more than 3% in recent trading activity Monday.

Price: 65.73, Change: +2.11, Percent Change: +3.32