Wedbush analyst, Gil Luria, maintained a Neutral rating on Etsy (NASDAQ: ETSY) but raised the PT to $10 from $9.

Quarter exceed expectations driven by strength in seller services. Revenue of $81.8m topped consensus estimate of $75.2m, with seller services revenue growth of 60% YoY helping drive the beat. We believe strength in seller services is attributable to the discontinuing of PayPal as a merchant acquirer option in 4Q15. We believe that going forward Seller Services will also benefit from the introduction of Pattern by Etsy. Additionally, a one-time benefit of $1.7m from gift card breakage contributed at 100% margin. Adj. EBITDA margins for the quarter was also strong at 18.0%, leveraging ~660 bps y/y. The high margin gift card breakage revenues, as well as a slowdown in marketing spend (30% growth YoY vs. 54% growth YoY in 4Q15) helped with the EBITDA outperformance.

Based on this quarter’s results, the analyst views guidance for both the second quarter and FY16 as conservative. Etsy reiterated 2016 guidance despite a strong beat in 1Q16, with GMS at the mid-point of their long term 13%- 17% target and revenue growth at the high end of their 20%-25% guidance.

For an analyst ratings summary and ratings history on Etsy click here. For more ratings news on Etsy click here.

Shares of Etsy closed at $8.40 yesterday.