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Investing.com - Cantor Fitzgerald maintained its Neutral rating and $64.00 price target on Etsy (NASDAQ:ETSY) following the company’s third-quarter results that exceeded analyst expectations. According to InvestingPro data, Etsy is currently trading at $62.36, with analysis suggesting the stock may be undervalued compared to its Fair Value.
The e-commerce platform reported gross merchandise sales (GMS) and EBITDA that surpassed prior Street estimates by 2% and 5%, respectively. Core marketplace GMS declined 2% year-over-year, showing improvement from the 5% decline in the second quarter, while Depop accelerated to 39% growth. Etsy maintains impressive gross profit margins of 72.2%, helping the company remain profitable despite challenging market conditions.
Etsy’s fourth-quarter guidance projects 2% year-over-year GMS growth at the midpoint, excluding Reverb, which came in above previous Street estimates. However, the EBITDA margin outlook of 24% fell below expectations as the company plans a significant sequential increase in brand marketing to drive awareness for Depop. This news contributed to Etsy’s stock taking a significant hit, down nearly 12% over the past week, though it still maintains a 50% gain over the last six months.
Cantor Fitzgerald noted that while the macro environment remains uncertain regarding global trade dynamics, Etsy continues making steady progress on key product initiatives.
The firm also highlighted that Etsy is well positioned to benefit from emerging agentic AI themes in 2026, though this potential upside wasn’t enough to warrant a rating change from its current Neutral stance.
In other recent news, Etsy reported better-than-expected third-quarter results, with gross merchandise sales (GMS) reaching $2.73 billion and revenue totaling $678 million. These figures exceeded analysts’ estimates by 2% and 3%, respectively. Following these results, several financial firms adjusted their price targets for Etsy. Canaccord Genuity raised its target to $80, citing solid quarterly performance and maintaining a Buy rating. Morgan Stanley increased its target to $65, while Evercore ISI slightly raised its target to $73 but downgraded the stock to In Line. Needham also adjusted its price target to $76, attributing the increase to Etsy’s recent partnership with OpenAI. Despite maintaining a Sell rating, Goldman Sachs raised its price target to $57, noting Etsy’s third-quarter GMS exceeded company guidance. These developments highlight the varied perspectives of financial analysts on Etsy’s recent performance and strategic positioning.
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