Etsy price target lowered to $72 from $75 at UBS

UBS analyst Chris Kuntarich lowered the firm’s price target on Etsy to $72 from $75 and keeps a Neutral rating on the shares. The mid-single digit January gross merchandise sales decline appears to be the function of testing reduced product listing ad spend, it reinforces the firm’s concern that Etsy could struggle to grow GMS without marketing deleverage, the analyst tells investors in a research note. Inventory dilutive to the Etsy experience remains a top structural overhang along with search, the firm adds.