Analyst Bryan Smilek of J.P. Morgan maintained a Hold rating on Etsy, retaining the price target of $60.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Bryan Smilek has given his Hold rating due to a combination of factors impacting Etsy’s market position and future prospects. The recent global suspension of the de minimis trade exemption, which previously allowed goods valued at $800 or less to enter the U.S. duty-free, is expected to lead to higher prices across the industry. This change could dampen consumer spending and sentiment, particularly affecting Asia-based retailers who have historically benefited from these exemptions. However, U.S. e-commerce platforms like Etsy might see some competitive advantage as these foreign competitors face increased operating costs.
Despite this potential advantage, Etsy’s growth is still challenged by macroeconomic headwinds affecting discretionary spending. While the company maintains strong adjusted EBITDA margins and free cash flow conversion, its growth and profitability projections are lower than some of its peers. Smilek’s price target of $60 for December 2026 reflects these challenges, as it is based on a multiple lower than that of core e-commerce comparables. Therefore, while Etsy has strengths in its marketplace model and product offerings, the external pressures and growth limitations justify a Hold rating at this time.
In another report released on August 7, Arete Research also upgraded the stock to a Hold with a $54.00 price target.