UBS analyst Chris Kuntarich has reiterated their neutral stance on ETSY stock, giving a Hold rating on October 17.
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Chris Kuntarich has given his Hold rating due to a combination of factors including Etsy’s current financial outlook and market conditions. The report highlights that while there is some acceleration in Etsy’s core Gross Merchandise Sales (GMS) growth, particularly in the third and fourth quarters, the overall growth remains modest. The expected GMS growth for the fourth quarter is projected to be between -9% to -6% year-over-year, which indicates a relatively stable but not overly optimistic growth trajectory.
Additionally, the valuation metrics suggest that Etsy’s stock is fairly priced at the moment, with a price target of $75 based on future EBITDA estimates. The analyst notes that there is a need for more confidence in Etsy’s ability to achieve mid-single-digit GMS growth by the end of fiscal year 2026 to consider a more positive rating. Furthermore, factors such as competition in product listing ads and the impact of social media marketing efforts are areas of focus that could influence future performance. These elements combined lead to the conclusion that a Hold rating is appropriate at this time.
In another report released on October 17, Jefferies also assigned a Hold rating to the stock with a $70.70 price target.