After a cloudy period, Aegis analyst Victor Anthony sees sunny skies peeking through for shares of eBay Inc (NASDAQ:EBAY), thanks to steady growth, low-cost multiple with an elevated FCF yield, capital returns, and the prospective key to “unlock value.” Therefore, the analyst initiated coverage on EBAY with a Buy rating and a price target of $36, which implies a potential upside of 21% from where the stock is currently trading.

One of the e-commerce and online auction giant’s best assets from Anthony’s eyes is StubHub, as he notes, “Growth continues to benefit from product improvements and a strong events line-up. We see StubHub as a potential spinoff (or sale) in the future. At EV/S valuations ranging from 1.5x-3.0x, StubHub would be valued at between $1.5B-$3B. Not a bad return considering that eBay paid $307M for the asset in 2007.”

Overall, “Following a challenging few years, eBay’s core marketplace is stabilizing, StubHub is executing, the Classifieds businesses continue to grow at a healthy double-digit pace, and management is returning capital via aggressive share repurchases. We see ~$5B-$7.5B ($4-$7 per-share) of value that could be potentially unlocked with StubHub and Classifieds. We continue to view eBay as a rare value Internet stock with growth potential. The valuation is un-demanding, the shares trade at a discount to the e-commerce peer group, and the 8% FCF yield is enticing,” Anthony surmises.

As usual, we like to include the analyst’s track record when reporting on new analyst notes to give a perspective on the effect it has on stock performance. According to TipRanks, five-star analyst Victor Anthony is ranked #113 out of 4,345 analysts. Anthony has a 61% success rate and realizes 12.5% in his annual returns. When recommending EBAY, Anthony yields 8.1% in average profits on the stock.

TipRanks analytics exhibit EBAY as a Buy. Out of 23 analysts polled by TipRanks in the last 3 months, 10 are bullish on eBay stock, 11 maintain a Hold, while 2 issue a Sell. The 12-month average price target stands at $33.10, marking an 11% upside from where the shares last closed.