Etsy downgraded to Underperform from Buy at Jefferies

Jefferies double downgraded Etsy to Underperform from Buy with a price target of $85, down from $150. Buyers are churning faster and spending less on Etsy, forcing the company’s marketing higher and putting pressure on EBITDA, the analyst tells investors in a research note. With more limited take rate upside and deteriorating buyer trends, there is downside to consensus estimates from slowing sales and moderating margin expansion, contends the firm. It says Etsy’s 70% valuation premium to internet peers looks unsustainable given the company’s below average EBITDA growth.