Goldman Sachs Notes 3 Growth Drivers At Etsy

In a report published Monday, analysts at Goldman Sachs initiated coverage of

with a Neutral rating and price targer of $20. The company has seen early success in building its online marketplace. According to Goldman Sachs, the company has seen early success "across a fragmented base of sellers expanding their market beyond crafts fairs and bazaars by enabling discovery, purchase, and fulfillment." The analysts believe that Etsy has the capacity to become a leader in a "potentially large addressable market segment." The analysts estimate the total addressable market for the company at $70 billion, although given that there are 30 product categories, the market could be worth retail spending of $1.4 trillion globally. "We believe Etsy is in the relatively early stages of expanding the scope of its platform by enabling sellers to grow their business through sponsored listings, fulfillment, and payments," the analysts said. The company has also recently begun investing in marketing product listing and plans to double this investment in 2015.