Shares of online toy retailer eToys (Nasdaq: ETYS) climbed more than 10 percent on Wednesday, gaining 6-1/4 to 65-7/8 after the stock was upgraded to trading buy from market outperform by Goldman Sachs. The investment bank now has a price target of $80 on the stock. Also on Wednesday, BancBoston Robertson Stephens reiterated its buy rating on eToys.
As the Christmas season approaches, eToys, which is expected to see solid revenue growth during the holidays, is becoming a favorite among many analysts. It is going to be interesting to see how much this stock runs up in anticipation of the holiday shopping frenzy and whether there will be any sort of sell off if the stock starts climbing too fast.