Benzinga - Shares of Etsy Inc (NASDAQ: ETSY) climbed during Thursday’s premarket session on fourth-quarter results.
- Oppenheimer analyst Jason Helfstein reiterated an Outperform rating, while raising the price target from $150 to $155.
- Needham analyst Anna Andreeva maintained a Buy rating and price target of $160.
- Raymond James analyst Rick Patel maintained an Outperform rating and price target of 155.
- KeyBanc Capital Markets analyst Noah Zatzkin reaffirmed a Sector Weight rating on the stock.
- Wolfe Research analyst Deepak Mathivanan reiterated a Peer Perform rating on the stock.
Oppenheimer
- “While once tagged a temporary pandemic winner, ETSY continues to show sustainability: despite reopening/shift to services headwind, revenue increased 13% y/y, reflecting value to seller community and destination to consumers,” Helfstein said.
- “Conservatively, we're lowering our 2H GMS growth estimate to 8% from 11%, even though results have exceeded guidance,” he added.
- “ETSY is exiting the pandemic arguably as a stronger company, yet valuation is at discount to pre-pandemic averages,” Andreeva wrote.
- “Compares ease substantially after 1Q23 (on a 3-year basis, 2Q23-4Q23 sales comparisons for core Etsy ease by 25-points on average after 1Q23) and profitability should improve on subs beginning to narrow some of their losses (after 400 bps drag this '22),” she further stated.
- “We’re encouraged that GMS growth on a y/3-year basis accelerated, a positive signal for demand,” Patel said.
- “If the current demand trends persist, GMS 2H would hit teens% growth y/y, but ETSY isn’t guiding this given volatile macro,” he added.
- “GMS growth remained challenged in 4Q (-4%), with strong revenue growth (+13%) driven by the April take-rate increase and outsized growth in Etsy Ads,” Zatzkin wrote in a note.
- “1Q revenue guidance featured a range inclusive of both our and consensus estimates, but adjusted EBITDA margin guidance implies modest contraction vs. 2022,” he added.
- The company’s gross merchandise sales and EBITDA came above Street expectations, “driven by healthy performance in the core ETSY marketplace during the holiday season,” Mathivanan said.
- “The company continues to see strong growth in new buyers to the platform, while reactivations were also strong in 4Q,” he added.
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