economy
JPMorgan upgrades Etsy, sees turnaround story taking stock another 20% higher
Etsy reported strong sales growth during its second-quarter earnings report this week, which could give its stock more room to run, per JPMorgan.
TL;DR
- JPMorgan upgraded Etsy to overweight from neutral, hiking its price target to $100.
- Etsy's Marketplace has seen year-over-year gross merchandise sales (GMS) growth for three consecutive quarters.
- The company exceeded analyst expectations for second-quarter adjusted EBITDA and revenue.
- Etsy forecasted mid-single-digit percentage GMS growth for the full year, an upward revision.
- Initiatives in search, app, and customer loyalty are driving active buyer acquisition, engagement, and retention.
- JPMorgan believes these factors position Etsy for sustainable growth, despite a consensus Wall Street view that is less bullish.