NEW YORK (AP) -- Shares of eBay climbed more than 2 percent on Thursday as an analyst said that Wednesday's selloff of the stock went too far and raised the e-commerce company's rating.
THE SPARK: Ken Sena of Evercore Partners lifted eBay Inc. to "Overweight" from "Equal-weight." He maintained a $64 price target.
THE ANALYSIS: Sena said in a client note that Mastercard Inc.'s Wednesday comments at an investor conference that it will be raising fees on digital wallet transactions — which includes those by eBay's online payments service PayPal — pressured the stock.
eBay's stock closed down 4 percent Wednesday.
Sena said that the fee increase is manageable, as eBay already accounted for it in its full-year PayPal profit margin outlook of 24 percent. While how much the fee will be raised has not yet been announced, Sena said it will likely have only a modest effect on PayPal's profit margin.
SHARE ACTION: Shares of eBay, based in San Jose, Calif., rose $1.26, or 2.5 percent, to $52.24 in morning trading. The stock has traded in a 52-week range of $35.31 to $57.26. For the year to date, the shares are basically flat.
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