Etsy (ETSY) PT Raised to $80 at Canaccord Genuity
Canaccord Genuity analyst Maria Ripps raised the price target on Etsy (NASDAQ: ETSY) to $80.00 (from $76.00) while maintaining a Buy rating.
The analyst comments "Etsy reported solid Q3 results relative to expectations, with consolidated GMS ahead of consensus and up ~1% y/y ex. the impact of the Reverb sale, and profitability was also mostly above expectations. Etsy marketplace GMS was down ~2% y/y (vs. down 5% in Q2), while Depop growth accelerated to nearly 40% y/y (vs. 35% in Q2), reflecting strong new user growth and conversion improvements. The macro backdrop remains dynamic, with changes to the de minimis exemption representing a modest headwind in the quarter, and US import trade more broadly saw some pressure, although this was partially offset by improved performance across US domestic trade as well as favorable competitive dynamics in the Google PLA market. Strategically, the company saw strong momentum with the Etsy app, with app GMS growth outperforming non-app GMS by ~13 ppts, and new ML models that power the app discovery feed have driven double-digit increases in engagement metrics. The Q4 GMS outlook was modestly ahead of consensus and assumes a stable macro backdrop, while profitability was below expectations, as Etsy plans to lean into brand marketing to support ongoing Depop momentum, and these investments will likely persist into 2026. Etsy also announced that Kruti Patel Goyal, President and Chief Growth Officer, will take over as CEO at the start of the new year, with Josh Silverman, current CEO, transitioning to Executive Chair. Etsy shares are down on the results, possibly reflecting the stock's rally into the print and the impact of elevated marketing investments on margins. We believe Etsy’s progress on core initiatives, coupled with a compelling valuation and clear strategic direction, should position the company well for a return to sustained growth."