Shares of Etsy Inc ETSY spiked in pre-market trading on Wednesday.
The New York-based company exited the pandemic stronger and has been able to hold onto the pandemic gains, according to Needham.
The Analyst: Anna Andreeva upgraded the rating for Etsy from Hold to Buy, while establishing a price target of $160.
Check out other analyst stock ratings.
The Thesis: Positive earnings revisions and multiple expansion could drive the company’s share upside going ahead, Andreeva said.
“ETSY has done a commendable job holding on to pandemic buyers in ’22, when reopening headwinds were significant — since ’19, repeat buyer penetration is up 800 bps, while habitual buyers increased by over 200% and reactivated buyers are up ~900k y/y YTD (and company now has better tools to reactivate ~100M buyers lapsed in the last 12-18 months),” the analyst wrote.
“While macro overhang remains, we think Etsy’s secret sauce is diversification of categories and relative value prop — with ecomm penetration expected to bounce back in ’23, we think ETSY should be gaining share again,” she added.
ETSY Price Action: Shares of Etsy rose by 3.12% to $117.10 in premarket trading on Wednesday.
Image via Etsy
Image and article originally from www.benzinga.com. Read the original article here.