UPDATE: Stifel Downgrades Ebay

In a report published Thursday, Stifel analyst Jordan Rohan downgraded eBay (NASDAQ: EBAY) from Buy to Hold.

According to the report, shares of EBAY rallied 5 percent after-hours on the news that Icahn is advocating a split of the payments business from the marketplaces business-- revisiting an idea to which the management team is opposed. At the same time, the company reduced its long-term revenue and EPS targets more severely than expected, with 2015 EPS falling by about 15 percent.

“The 4Q13 results were better than feared, in line with our $0.81 PF EPS estimate and ahead of the consensus $0.80. But the company gutted its 2015 revenue and EPS outlook, offered just 10 months ago. The midpoint of the EPS guide fell from $3.80 to $3.30, a drop of 13%. The issues: 1) Marketplaces - revenue growth is falling short of prior assumptions; 2) Paypal – Expenses (investment) are increased on a stable revenue outlook; 3) Enterprise (GSI) – the transition to a new platform is resulting in lower profits.”

EBAY closed Wednesday at $54.41.