Citi analyst Ygal Arounian maintained a Hold rating on Etsy (ETSY – Research Report) yesterday and set a price target of $53.00.
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Ygal Arounian’s rating is based on several factors that highlight both challenges and potential opportunities for Etsy. The company’s recent performance showed a decline in Gross Merchandise Sales (GMS) for the fourth quarter and a guidance for the first quarter of 2025 that fell short of expectations. While Etsy’s management is optimistic about future improvements, Arounian remains cautious until there is clear evidence of a return to growth.
Furthermore, Arounian notes that Etsy has made strategic decisions that have temporarily impacted short-term conversions to prioritize long-term platform health. Although these product realignments might offer some future benefits, the growth outlook is still heavily influenced by macroeconomic challenges with limited visibility on improvement. As a result, the onus is on Etsy to demonstrate its growth potential amid concerns about total addressable market and saturation levels. Overall, these factors contribute to a Hold rating, reflecting a balance of potential upside and existing risks.
In another report released today, Barclays also maintained a Hold rating on the stock with a $55.00 price target.