Etsy downgraded to Market Perform from Outperform at Bernstein

Bernstein analyst Nikhil Devnani downgraded Etsy to Market Perform from Outperform with a price target of $100, down from $120. The firm hoped the company’s Q3 gross merchandise sales guidance and management commentary “could draw a line in the sand” on the business returning to growth, but says “it wasn’t quite as reassuring.” Backing out currency tailwinds would imply the GMS growth is muted at best and possibly still negative year-over-year, the analyst tells investors in a research note. Bernstein says it is hard to argue for multiple expansion for Etsy without growth notably re-accelerating.