Oppenheimer Upgrades Etsy to Outperform with $90 Price Target
On September 15, Oppenheimer upgraded Etsy from Perform to Outperform and set a price target of $90. The upgrade is based on improving website traffic trends for non-app buyers in Q3 compared to the previous quarter's decline, suggesting Etsy could hit the high end of its gross merchandise sales (GMS) guidance. The firm also cited positive survey results from 2,500 U.S. consumers and noted that product improvements are gaining traction. Oppenheimer highlighted Etsy’s strong competitive moat and reduced reliance on Google Search as key advantages over eBay despite similar growth rates. The $90 price target is based on a 12 times multiple of Etsy's projected 2027 EBITDA. Etsy reported Q2 GMS increased by 7.5% year-over-year to $2.6 billion, marking the third consecutive quarter of growth and announced a new $2 billion share repurchase program. However, challenges remain as purchase frequency is still below prior levels despite improvements.
Topics: AI improvements Etsy GMS growth Oppenheimer Share buyback