Brean Capital Reiterates Buy On Etsy, Fine-Tunes Earnings Model

In a report published Tuesday, Brean Capital analysts maintained a Buy rating on

, with a price target of $23, while fine-tuning the earnings model after a review of the company's 10Q [filed on May 22] and earnings call [on May 19]. In the report Brean Capital noted, "As part of our effort, we reviewed changes in FX rates for a basket of currencies to improve our understanding of the potential impact of changes in exchange rates to our forecasts, especially for international gross merchandise sales (GMS) and revenue. We also re-examined our forecasts for investments in marketing spending and headcount." "Lastly, we reviewed our near-term seller services projections, including the components – promoted listings (advertising), direct checkout (payments), and shipping services (logistics)," the analysts said. The revenue and EPS estimates for FY15 have been reduced from $281.2 million to $278.5 million and from $27.5 to $25.1, respectively. The revenue and EPS estimates for FY15 have been reduced $374.6 million to $363.5 million and from $41.2 to $37.6, respectively. The analysts continue to believe that the company's stock is "compelling at current share prices" and recommend investors purchase shares.