Etsy (ETSY – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Ken Gawrelski from Wells Fargo maintained a Sell rating on the stock and has a $41.00 price target.
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Ken Gawrelski has given his Sell rating due to a combination of factors impacting Etsy’s financial outlook. One of the primary concerns is the lack of confidence in a sustainable recovery, as the competitive landscape could intensify with tariff relief potentially benefiting rivals like Temu and Shein. Despite a temporary boost in daily active user growth, driven by reduced advertising from competitors, the overall growth in gross merchandise sales (GMS) remains negative year-over-year.
Additionally, while Etsy’s shares have seen a significant rally, Gawrelski believes that the market has already priced in the expected growth, leaving limited upside potential. The recent sale of Reverb, although providing a slight margin benefit, also contributes to a reduction in future GMS estimates. Consequently, the analyst maintains an Underweight rating and has set a price target of $41, reflecting the challenges Etsy faces in sustaining its growth trajectory.
Based on the recent corporate insider activity of 81 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ETSY in relation to earlier this year.