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Investing.com - Citizens JMP has reiterated its Market Perform rating on Etsy (NASDAQ:ETSY) stock, citing ongoing competitive pressures in the retail space. According to InvestingPro analysis, the stock appears undervalued at its current price of $54.13.
The research firm acknowledged Etsy’s unique inventory and its ability to better merchandise products on its platform, which continues to be a strength for the company. This is reflected in the company’s impressive gross profit margin of 72.3% and strong financial health score, as reported by InvestingPro.
Citizens JMP noted that forwarded inventory from overseas manufacturers has significantly increased competition across the retail sector, creating a challenging environment for Etsy.
While the firm believes that tariffs provide some benefit to Etsy’s business model, it emphasized that structurally there is more competition in the market today than previously.
The research firm indicated it would maintain its current rating until there is clarity that competitive pressures have peaked, which would be necessary before adopting a more positive stance on the stock.
In other recent news, Etsy announced the pricing of $650 million in convertible senior notes due 2030, with a 1.00% interest rate, to be offered to qualified institutional buyers. The company plans to use approximately $175 million of the proceeds to repurchase its common stock, with the remainder directed towards general corporate purposes. Truist Securities raised its price target for Etsy to $60, citing positive growth data and an increase in monthly active user growth. The firm maintained a Buy rating, noting Etsy’s improved marketing efficiency and product quality. Meanwhile, Bernstein SocGen Group analysts reiterated a Market Perform rating on Etsy, maintaining a $45 price target. They highlighted improved sentiment and potential short covering as factors in the recent stock movement. Analysts also noted a decline in competitor Temu’s user traffic, which may have contributed to Etsy’s positive outlook. These developments reflect ongoing investor interest and strategic financial maneuvers by Etsy.
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