UPDATE 1-RESEARCH ALERT-Stifel raises eBay to buy

(Adds details, share movement)

June 16 (Reuters) - Stifel Nicolaus raised eBay Inc (EBAY.O) to "buy" from "hold", citing the online auction site's efforts to better its buyer experience and the improved performance of certain segments.

The brokerage said eBay is now marketing its products to consumers in a better way with tools such as Best Match, which is a sorting technology for its best sellers.

"As a maturing business, if eBay can increase activity with customers that already use the product, it can win in a big way," analyst Scott Devitt, who kept his $35 target price on the stock, wrote in a note to clients.

Devitt said all of eBay's fixed price items now qualify for Microsoft Corp's (MSFT.O) cash back program, and added that the cash reward alignment shows further interest by Microsoft to leverage eBay's e-commerce position to battle Google Inc (GOOG.O).

Shares of eBay were up more than 1 percent at $28.72 in trading before the bell on Nasdaq. (Reporting by Bijoy Koyitty in Bangalore; Editing by Anil D'Silva)