EBay is a rare cheap growth stock: Top analyst

Devin Wenig, CEO, eBay
David A. Grogan | CNBC

Deutsche Bank's Ross Sandler, one of Wall Street's top analysts, upgraded his rating on eBay shares to buy from hold on the prospect of better-than-expected growth due to a website upgrade.

"We think EBAY is in the latter stages of its re-platforming, which is the time period where select internet stocks historically tend to generate the most alpha," Sandler wrote in a note to clients Wednesday. "There are few out-of-favor accelerating-growth stories with upside to estimates and a reasonably low valuation, from that perspective EBAY might be the best story in Internet heading into 2017."

Sandler's picks have a 12 percent one-year average return with a 69 percent success rate, according to analyst ranking service TipRanks, placing him in the top 2 percent of all Wall Street analysts covering any industry.