Evercore ISI raises Etsy stock price target to $71 on growth inflection

Published 28/07/2025, 23:00
Evercore ISI raises Etsy stock price target to $71 on growth inflection

Investing.com - Evercore ISI raised its price target on Etsy (NASDAQ:ETSY) to $71.00 from $54.00 on Monday, while maintaining an Outperform rating on the e-commerce platform. The stock, currently trading at $62.72, appears undervalued according to InvestingPro Fair Value metrics.

The price target adjustment represents a significant 31.5% increase from the firm’s previous valuation, reflecting greater confidence in Etsy’s growth trajectory.

Evercore ISI cited evidence of "an upward core Etsy GMS growth inflection exiting Q2 and into Q3" based on third-party data, despite acknowledging some volatility in the metrics.

The investment firm identified several positive factors supporting its more bullish outlook, including "the return to GMS banking earlier this year, easing comps in 2H, increased app usage, improving paid search visibility (via reduced competition), and improved search marketing ROAS."

The new price target is based on Evercore’s forward-looking valuation model, which now extends to fiscal year 2027, according to the research note.

In other recent news, several analyst firms have adjusted their outlooks on Etsy, reflecting varied expectations for the company’s future performance. Raymond (NSE:RYMD) James raised its price target for Etsy to $70 from $50, maintaining an Outperform rating, with expectations of a modest sequential improvement in demand for the second quarter of 2025. UBS also increased its price target to $62 from $45, citing improved growth expectations for fiscal year 2025 and projecting a 7.7% year-over-year decline in gross merchandise sales alongside $730 million in EBITDA. JPMorgan adjusted its price target to $53 from $50, keeping a Neutral rating, noting Etsy’s strategic focus on both short-term sales conversions and long-term product optimizations. Morgan Stanley (NYSE:MS) upgraded Etsy from Underweight to Equalweight, raising its price target to $50, based on a valuation reassessment. Meanwhile, Citizens JMP reiterated a Market Perform rating, highlighting ongoing competitive pressures but acknowledging Etsy’s unique inventory and merchandising strengths. These developments indicate a mixed but cautiously optimistic outlook from analysts regarding Etsy’s future performance.

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