Etsy initiated with a Neutral at Wedbush

Wedbush initiated coverage of Etsy with a Neutral rating and $70 price target. The analyst believes the company’s long-term value is overshadowed by its near-term headwinds. Etsy could see additional pressure on gross merchandise sales and actives buyer growth through the balance of 2023 as rising gas prices and the restart of federal student loan payments in October suggest incremental consumer discretionary spending pressure in Q4, the analyst tells investors in a research note. Over the longer term, the firm believes Etsy has positive growth opportunities both in the U.S. and abroad, saying its “unique marketplace is difficult to replicate.”