Technology

Wall Street Was More Pleased With Etsy Than Its Investors

Jon C. Ogg

Published: October 29, 2020 2:38 pm

Last Updated: October 29, 2020 2:42 pm

Etsy, Inc. (NASDAQ: ETSY) has become one of the de facto stock market winners from the spread of the coronavirus. On top of the company being a leading eCommerce portal for countless numbers of online sellers, Etsy keeps getting referenced for its great customized masks.

After Etsy reported earnings, the initial reaction was a “sell the news” trade. The reason and logic is simple enough – its stock had surged by more than 300% from the panic selling lows in March. Analysts on Wall Street have by and large pointed out that the company beat on earnings and beat on revenues.

The selling pressure appears to be tied to more decelerating growth than based on the actual numbers. Etsy was also price for perfection at about 11 times revenue expectations for this year with sales growth expected to be in the low-double-digits in 2021.

Etsy was last seen trading down 4.1% at $133.87, but many analysts raised their price targets. Etsy was included in the 24/7 Wall St. Top Analyst Upgrades & Downgrades on Thursday, but there were many more calls that were seen as the day went on.

Etsy was reiterated as Underweight and its price target was raised to $74 from $68 at Morgan Stanley.

Etsy was reiterated as Outperform and its price target was raised to $165 from $155 at Wedbush Securities.

It was reiterated as Buy and its price target was raised to $155 from $150 at Needham & Co.

Many more analyst calls were seen:

• KeyBanc Capital Markets reiterated its Overweight rating and raised its target to $160 from $150.
• Canaccord Genuity reiterated its Buy rating and raised its target to $170 from $160.
• BTIG reiterated its Buy rating and raised its target to $160 from $138.
• D.A. Davidson reiterated its Buy rating and raised its target to $167 from $160.
• Deutsche Bank reiterated its Buy rating and raised its target to $162 from $159.
• Jefferies reiterated its Buy rating and raised its target to $168 from $167.
• RBC Capital Markets reiterated its Outperform rating and raised its target to $169 from $164.

Etsy shares have a 52-week trading range of $29.95 to $154.88, and its market capitalization after the drop was still close to $17 billion.