BofA update shows where active managers are putting money
Truist Securities raised its price target on Etsy (NASDAQ:ETSY) to $60.00 from $55.00 on Tuesday, while maintaining a Buy rating on the e-commerce marketplace focused on handmade and vintage items. According to InvestingPro data, analyst targets for Etsy range from $31 to $92.45, with the company currently valued at $5.6 billion.
The price target increase follows Truist Card Data showing that Etsy’s Marketplace revenue quarter-to-date through June 11 is tracking ahead of consensus estimates, according to the research firm.
Truist also noted an acceleration in year-over-year monthly active user growth, reaching its highest level in 22 months based on SensorTower data, reflecting positive traction with the company’s growth initiatives.
These initiatives include improvements in product quality, specifically discoverability and quality score, along with enhanced marketing efficiency that has enabled Etsy to win more ad auctions.
While the tariff situation remains fluid, Truist believes Etsy’s exposure to the potential elimination of the de minimis exemption remains manageable for the company. The company maintains a strong financial position with a current ratio of 2.14, indicating sufficient liquidity to handle potential challenges.
In other recent news, Etsy announced the pricing of $650 million in convertible senior notes due 2030, with a 1.00% interest rate. The company plans to use approximately $175 million of the proceeds to repurchase its common stock, with the remaining funds allocated for general corporate purposes, possibly including debt repayment. The notes are convertible into cash, Etsy common stock, or a combination of both, at the company’s discretion. Additionally, Cantor Fitzgerald raised its price target for Etsy stock to $52 from $47, citing recent product adjustments and tariff-related shifts as short-term positives, while maintaining a Neutral rating. Meanwhile, analysts at Bernstein SocGen reiterated a Market Perform rating with a $45.00 price target, noting improved sentiment and alternative data suggesting a positive outlook for Etsy’s growth. The analysts highlighted potential product changes and reduced competitor traffic as contributing factors to Etsy’s recent stock performance. These developments underscore ongoing strategic and market-related shifts for Etsy.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.