Needham raises Etsy stock price target to $72 on improved growth outlook

Published 31/07/2025, 13:54
Needham raises Etsy stock price target to $72 on improved growth outlook

Investing.com - Needham has raised its price target on Etsy (NASDAQ:ETSY) to $72.00 from $55.00 while maintaining a Buy rating on the stock following the company’s second-quarter results. The new target falls within the broader analyst range of $41 to $88, with InvestingPro data showing 4 analysts recently revising their earnings estimates upward.

The price target increase represents a 31% upside from the previous target and comes after Etsy reported better-than-expected performance in its second quarter.

Needham cited "greater confidence in a return to sustainable GMS growth and margin durability" as key factors behind the more optimistic outlook for the e-commerce marketplace.

The firm acknowledged that expectations and valuation for Etsy were already elevated heading into the earnings report, but viewed the company’s third-quarter guidance positively, noting it calls for "another sequential improvement in GMS trends."

Needham indicated that while the guidance provides "a good starting point," the market will likely need to see "continued improvement in the coming quarters on its way back to YoY growth to support further multiple expansion."

In other recent news, Etsy reported its second-quarter earnings for 2025, revealing a mixed performance. The company posted an earnings per share (EPS) of $0.25, which missed the expected $0.48. However, Etsy exceeded revenue forecasts, reporting $672.7 million compared to the anticipated $646.86 million. This revenue beat was noted by several analysts, leading to changes in price targets. Guggenheim raised its price target for Etsy to $70, maintaining a Buy rating, citing improved marketplace trends. Canaccord Genuity also increased its price target to $76, attributing the decision to better-than-expected sales and profitability figures. BTIG followed suit, raising its price target to $72 due to improving gross merchandise sales trends. Meanwhile, Stifel lowered its price target to $64, maintaining a Hold rating, and noted mixed signals in Etsy’s third-quarter guidance despite solid second-quarter performance.

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