After Latest Upgrade, Should You Bid on eBay?

It seems that online auction site eBay is catching a bid, where it matters most.

On Tuesday, Think Equity analyst Aaron Kessler upgraded the stock to ‘Buy’ from 'Hold’ and raised his price target to $38 from $36.

Kessler is bullish on two fronts – PayPal and the marketplace business.

Looking at the strength online Kessler says, ” We believe continued improvement in the U.S. Marketplace business as well as stable Europe Marketplace growth could serve as a catalyst for shares.”

And looking at Paypal, he says, "While we think increased apprehension over Payments competition has been a concern recently, we believe that PayPal's leadership position, with nearly 100 million active accounts and strong technical expertise provides PayPal with an early advantage.”

Hear more from Kessler in our exclusive interview. Watch the video now!

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Trader disclosure: On May 31, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Terranova owns (XOM); Terranova owns (KSS); Terranova owns (CVI); Terranova owns (OXY); Terranova owns (TM); Terranova owns (BJ); Terranova owns (DIS); Terranova owns (PFE); Terranova owns (V); Terranova owns (HPQ); Terranova owns (FLX); Terranova owns (JPM); Terranova owns (MCD); Terranova owns (PEP); Terranova owns (VRTS); Terranova is short (DELL); Adami owns (AGU); Adami owns (C); Adami owns (INTC); Adami owns (GS); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU); Finerman and Finerman's Firm own (AAPL); Finerman's Firm owns (DIS); Finerman 's Firm owns (JPM) leaps and (JPM); Finerman owns (JPM); Finerman's Firm is short (IWM); Finerman's Firm is short (MDY); Finerman's Firm is short (SPY); Finerman's Firm owns S&P 500 Calls; Finerman's Firm owns S&P 500 Puts; Finerman's Firm owns Russell 2000 Puts

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