EBay (EBAY) could sustain stronger merchandise volume growth through 2027 as focus categories, recommerce, AI tools, advertising and Depop support demand, while near-term margin pressure from the Depop deal is expected to ease over time, Wedbush said in a note Thursday.

EBay's growth is becoming more durable because a larger share of merchandise volume now comes from areas the company can directly influence, including focus categories, consumer-to-consumer sales and recommerce, Wedbush said.

The investment firm expects eBay to keep gaining from collectibles, vehicles, luxury and used fashion, while eBay Live could become a larger contributor after its merchandise volume increased about eightfold from a year earlier.

Depop is expected to add to merchandise volume and revenue growth, although the acquisition will pressure earnings and margins in the near term, the firm said. Wedbush expects Depop to start adding to non-GAAP operating income in 2028, according to the note.

The firm maintained the company's outperform rating while raising its price target to $137 from $135.

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