Analyst Bernie McTernan from Needham reiterated a Buy rating on Etsy and increased the price target to $76.00 from $72.00.
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Bernie McTernan has given his Buy rating due to a combination of factors that highlight Etsy’s strategic positioning and growth potential. The recent partnership with OpenAI is seen as a positive development, enhancing the company’s structural positioning in the evolving ecommerce landscape. Additionally, the faster-than-expected narrowing of GMS contraction has led to an upward revision of growth estimates, contributing to a more favorable outlook.
However, McTernan acknowledges that investments, particularly in the Depop brand, are expected to impact adjusted EBITDA in the near term. Despite this, the overall strategy, including the integration of AI to leverage Etsy’s unique inventory, supports the Buy rating. The analyst remains optimistic about the company’s trajectory, even as brand marketing investments may weigh on shares in the short term.
In another report released yesterday, Truist Financial also maintained a Buy rating on the stock with a $80.00 price target.