Benzinga - Etsy Inc (NASDAQ: ETSY) shares are up more than 3.5% Wednesday following positive analyst coverage from Needham.
What Happened: Needham analyst Anna Andreeva upgraded Etsy from Hold to Buy and announced a $160 price target, citing positive earnings revisions and multiple expansion ahead.
Andreeva believes Etsy is exiting the pandemic stronger than it was in 2019 as it has been able to retain about 90% of buyers despite the challenging consumer environment.
"The company is still in the early innings of various product and marketing initiatives to engage and retain the record-high number of buyers and sellers added to the platform in the last 18 months, which should improve visibility, awareness and mind-share among consumers, ultimately invigorating GMS growth and profitability for years to come," Andreeva wrote in a new note to clients.
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Comparisons will only get easier from here and profitability is expected to improve, the Needham analyst said.
Andreeva put a $200 bull case target on the stock and an $85 bear case target. The analyst's $160 price target implies an 8 times EV/sales multiple on its 2023 estimates.
ETSY Price Action: Etsy has a 52-week high of $200 and a 52-week low of $67.01.
Etsy shares are up 3.47% at $117.50 at time of publication, according to Benzinga Pro.
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