Key points:
- Etsy will report Q3 results Wednesday
- The company’s shares are down 57% in 2022
- Most analysts see the stock as a Buy or Hold
Online marketplace Etsy (NASDAQ: ETSY) will report its third-quarter earnings after the close on Wednesday, November 3.
The company’s shares have had a pretty tough year so far, falling over 57%, while they are down 60% in the last 12 months. Following Etsy’s share price rise from June to August, its shares have remained somewhat resilient, trading around the $103 mark, although it is now down at $94.36 per share.
The company also repealed last week that it has appointed VP of Engineering Rachana Kumar as Chief Technology Officer, effective January 1, 2023, after Mike Fisher, Etsy's current Chief Technology Officer, has decided to step down.
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Earlier in October, analysts at UBS, BTIG and Goldman Sachs adjusted tier ratings and price targets on Etsy shares.
UBS analyst Kunal Madhukar lifted the firm's price target on Etsy to $100 from $83, maintaining a Neutral rating on the stock. Madhukar told investors in a research note that a survey of sellers suggests trends may have gotten modestly worse in the past three months as core Etsy gross merchandise sales declined in the first half and the management guided to another decline in Q3. The analyst did raise his gross merchandise sales expectations modestly to better reflect historical seasonality.
BTIG analyst Marvin Fong dropped the firm's price target on Etsy to $119 from $122 but kept a Buy rating, telling investors in a note that his clickstream tracking suggests a “meaningful upside” to Etsy’s third-quarter gross merchandise volume guidance and Street expectations. The analyst remains positive about Etsy's “dominant position” within the handmade/special vertical.
Finally, Goldman Sachs initiated coverage of Etsy with a Buy rating and a $130 price target in a research note. The firm said that through ongoing macro headwinds, the company had shown a “great level of resiliency” relative to many of its e-commerce peers while the company continues to execute against a “vast and growing” e-commerce opportunity with marketplace differentiation “at scale.”
Overall, according to TipRanks, out of 10 analysts, five have Buy ratings, and five have Hold ratings on Etsy, with an average price target of $111.20, representing a potential 18.41% upside from current levels.
