Etsy (ETSY) PT Lowered to $60 at Deutsche Bank
Deutsche Bank analyst Leo Horowitz lowered the price target on Etsy (NASDAQ: ETSY) to $60.00 (from $65.00) while maintaining a Hold rating.
The analyst comments "Set against fairly tepid expectations, Etsy reported a 1Q GMS miss, with a 2Q outlook that will continue to call into question the viability of Etsy's ability to return the platform back towards meaningful volume growth. While the underlying signal from products like Gift Mode are positive, with Gifting as a category growing LSD in the quarter, the overall macro and competitive pressures that Etsy is facing continue to surprise to the downside, creating uncertainty as it relates to the company's expectation that GMS declines can improve in the 2H. Furthermore, while Etsy's product vision for 2024 takes a number of bold steps, and management remains encouraged by the early returns on Gift Mode, gross additions in the quarter (New + Reactivated Buyers) declined Y/Y for the first time since 1H22, despite the introduction of Gift Mode and the related ad spend promoting the product. All in, given accelerative GMS declines in the 1Q, a 2Q outlook that is unlikely to improve, gross addition growth that has turned negative, all despite the introduction of Gift Mode in the 1H24, we remain skeptical that new products can successfully bend the GMS growth curve in the 2H."