Etsy price target lowered to $64 from $66 at Morgan Stanley

Morgan Stanley assumed coverage of Etsy and lowered the firm’s price target to $64 from $66 while keeping an Equal Weight rating on the shares. Gross merchandise sales, or GMS, growth has been pressured by a tough macro backdrop and higher ad rates and though Etsy is investing to try to reaccelerate GMS, this led to disappointing near-term EBITDA margin guidance, the analyst noted. The firm struggles to underwrite the medium-term growth trajectory until the company shows frequency growth or valuation fully resets, the analyst tells investors.