Wolfe Research Starts Etsy (ETSY) at Peerperform, 'Tactical Long'

Wolfe Research analyst Shweta Khajuria initiates coverage on Etsy (NASDAQ: ETSY) with a Peerperform rating.

The analyst comments "We question Etsy’s NT ability to meaningfully accelerate GMS and Active Buyer growth given the ongoing macro headwinds driven by pressure on consumer discretionary spend and rising competitive dynamics. However, in the mid-to-long term, in a more normalized macro environment, we believe Etsy is well-positioned to deliver topline growth that exceeds industry growth, implying meaningful share gains, driven by international expansion, product innovation, marketing efforts, and secular tailwinds. We will wait patiently for a more attractive entry point. Initiating coverage at Peer Perform. Valuation: Our FV Range is $47-$74 is derived by a blended EV/EBITDA multiple of 11x FY25, a discount to the comp group median of 11.9x given Etsy's topline growth profile. For context, ETSY shares are currently trading at 10.4x FY25 EBITDA and 20.8x '25 EPS vs. its 5-year historical median of 24.7x and 47.4x, respectively."

For an analyst ratings summary and ratings history on Etsy click here. For more ratings news on Etsy click here.

Shares of Etsy closed at $60.50 yesterday.

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