Etsy (ETSY) shares dropped over 8% on Monday, as investors reacted to a looming policy shift that could impact the online marketplace’s cost structure and global reach. The selloff follows reports that the U.S. government is preparing to end the “de minimis” tariff exemption, a rule that has allowed small international purchases, often under $800, to enter the country without import duties.
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This exemption has long supported platforms like Etsy, which connect millions of U.S. buyers with independent sellers overseas. Without it, buyers may face higher prices, and sellers could see increased costs, potentially hurting demand and margins. Etsy’s business model, which depends on cross-border transactions, is vulnerable to such changes.
Thus, the upcoming change in policy has raised concerns over Etsy’s future sales and the impact on its financial position.
Truist Analyst Raised ETSY Stock Target to $75
Last week, Truist Financial analyst Youssef Squali raised the price target for Etsy stock to $75 from $70 with a Buy rating.
The analyst noted that Etsy’s marketplace revenue so far this quarter looks better than expected, based on credit card spending data. He also expects comparisons to get easier in the coming months, which could help Etsy show stronger growth by the end of the year.
Overall, Squali believes Etsy is gaining momentum, thanks to efforts to improve product quality and other growth initiatives.
Is Etsy a Buy or Sell?
Turning to Wall Street, ETSY stock has a Moderate Buy consensus rating based on eight Buys, 13 Holds, and one Sell assigned in the last three months. At $64.57, the average Etsy stock price target implies a 12.55% upside potential.
