Bernstein analyst Nikhil Devnani maintained a Hold rating on Etsy (ETSY – Research Report) yesterday and set a price target of $50.00.
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Nikhil Devnani’s rating is based on several considerations regarding Etsy’s current and projected performance. Despite the company’s optimism for improvement in the second half of 2025, Etsy’s growth appears to be faltering, as evidenced by a decline in Gross Merchandise Sales (GMS) in the fourth quarter and lower traffic and conversion rates. The guidance reflects that these weak dynamics may continue into the first quarter, leading to modest growth that doesn’t warrant enthusiasm.
The challenges facing Etsy are compounded by the lack of clear solutions to revive growth. While increased marketing efforts have not reversed the downward trajectory of GMS, the need for enhanced product development to drive long-term customer engagement is evident, though no immediate remedy exists. While R&D and marketing expenses are expected to impact margins, the potential benefits of search and loyalty programs remain uncertain. Consequently, Devnani has adjusted GMS and EBITDA projections downward, reflecting a cautious stance on Etsy’s ability to navigate these hurdles effectively.
According to TipRanks, Devnani is a 5-star analyst with an average return of 26.6% and an 80.00% success rate. Devnani covers the Consumer Cyclical sector, focusing on stocks such as Etsy, Wayfair, and eBay.