NEW YORK (CNN/Money) - Analysts at JPMorgan Chase have set a $130 price target for shares of eBay, citing upside potential for its online payment system PayPal.
If the online auction and payment company hits that price target, the shares will experience 30 percent price growth. The shares are up about 75 percent over the last 12 months.
JPMorgan also added the stock to its focus list, and edged its revenue and earnings-per-share estimates for the company slightly higher.
"We believe the roll out of PayPal on eBay's international platform will increase auction velocity, increase cross-border trade, and increase buyer/seller trust," said the note from JPMorgan.
The firm had previously not had a price target for eBay, which closed Friday at $99.68, down $1.19 a share. Shares of eBay rose $2.47 to $102.15 in pre-market trading on the INET electronic brokerage early Monday. Analysts surveyed by earnings tracker First Call have a consensus 12-month target price of $105.
JPMorgan raised its EPS forecast to $1.66 for 2005 from its earlier forecast of $1.63, and upped the revenue forecast for next year to $4.5 billion from $4.4 billion. It also debuted 2006 estimates for eBay of EPS of $2.24 and revenue of $5.8 billion.
First Call forecasts 2004 EPS of $1.22 and revenue of $3.3 billion. Its 2005 consensus forecast is for EPS of $1.59 and revenue of $4.3 billion.