Oklo stock tumbles as Financial Times scrutinizes valuation
Investing.com - UBS raised its price target on Etsy (NASDAQ:ETSY) to $75.00 from $67.00 on Monday, while maintaining a Neutral rating on the e-commerce platform. The stock, currently trading at $70.46, has shown impressive momentum with a 59.6% return over the past six months, according to InvestingPro data.
The firm increased its fiscal year 2026 EBITDA estimate by 1.5% to $758 million, compared to the Street consensus of $752 million. This adjustment reflects a 0.9% year-over-year growth in Core GMS (Gross Merchandise Sales), versus the Street’s expectation of 0.3%, along with 10 basis points of EBITDA margin leverage. The company maintains impressive gross profit margins of 72.2%, reflecting strong operational efficiency.
UBS now forecasts core GMS declines to moderate in the third and fourth quarters to -4.5% and -3.75% year-over-year, respectively, excluding foreign exchange impacts. This improvement from previous estimates of -5% and -4% comes as U.S. Etsy sales data accelerated 3 percentage points in the third quarter.
The firm noted that Google Product Listing Ads activity by competitors Amazon, Temu, and Shein was "modestly favorable" for Etsy, with Amazon not participating in U.S. shopping ads since late July.
At $70 per share, representing 12 times FY27 EBITDA against 8% EBITDA growth, UBS indicated it needs "more confidence that Etsy+Depop GMS growth is on a path to delivering mid-single-digit plus GMS growth exiting FY26" before taking a more constructive view on the stock. The company currently trades at a P/E ratio of 50x, with analyst price targets ranging from $48 to $86.
In other recent news, Etsy Inc. reported its Q2 2025 earnings, showcasing a mixed financial performance. The company’s consolidated revenue saw a 4% increase year-over-year, reaching $673 million. However, Etsy experienced a decline in its Gross Merchandise Sales (GMS), which fell by 4.8% to $2.8 billion. These financial results highlight a growth in revenue despite challenges in merchandise sales. Investors and analysts are likely to scrutinize these figures closely to understand the company’s current market position. Such developments may influence future analyst ratings and investor decisions. As these figures become public, they provide a clearer picture of Etsy’s financial health and operational trends.
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