Market Overview

Wedbush's Confidence In Etsy Increases After Meeting With CFO

Share:
Wedbush's Confidence In Etsy Increases After Meeting With CFO

After hosting a meeting with Etsy Inc (NASDAQ: ETSY) executives, Wedbush walked away with positive takeaways. 

The Analyst

Ygal Arounian maintained a Neutral rating on Etsy with a $60 price target.

The Thesis

Following a meeting with CFO Rachel Glaser, Arounian said Etsy management feels it is in early stages of launching several initiatives that will accelerate gross merchandise.

These would allow the company to capture a greater share of its total addressable market over the next three to five years, the analyst said in a Tuesday note. (See his track record here.) 

Product initiatives, marketing and CRM improvements and better shipping are some of the catalysts that will push Etsy's growth forward, he said. 

“A better product also improves the likelihood that future pricing increasing can be digested by buyers." 

Pricing and take rate increases have been the No. 1 topic for investors, Arounian said. 

Any future price increase will be tied to Etsy aiming to offer more services or improvements to sellers, in the analyst's view. 

“While not ruling out any future price increases, management did note not to ever expect it on a scheduled basis." 

Etsy is aiming to create a more unified shipping policy, according to Wedbush.

The company’s shipping offerings are still limited to discounted printing labels, but Arounian said speed, accuracy and return policies are also important to improving the shipping experience.

“And while there has been some testing on the former three, most of the focus to date has been on cost (better rates for sellers, free delivery for buyers)."

Etsy's Glaser said sellers of expensive items are accustomed to shipping challenges — but Etsy can offer "white glove, first and last mile delivery" functionality for many of its sellers,” the analyst said. 

Price Action

Etsy shares were up 2.53 percent at $66.92 at the time of publication Tuesday. 

Related Links:

Analysts Cautious About Etsy's Tone Despite Strong Q4 Earnings

Jim Cramer Gives His Opinion On Cronos, Etsy And More

Photo courtesy of Etsy. 

Latest Ratings for ETSY

DateFirmActionFromTo
Oct 2019MaintainsEqual-Weight
Oct 2019Initiates Coverage OnBuy
Sep 2019UpgradesSector PerformOutperform

View More Analyst Ratings for ETSY
View the Latest Analyst Ratings

Posted-In: e-commerce Rachel Glaser Wedbush Ygal ArounianAnalyst Color Price Target Reiteration Analyst Ratings Best of Benzinga

 

Related Articles (ETSY)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
ELMDDougherty & Co.Initiates Coverage On12.0
MRNSCantor FitzgeraldAssumes7.0
MNRLCapital One FinancialInitiates Coverage On23.0
SONVertical GroupUpgrades
UNPMorgan StanleyMaintains136.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Analyst: AMD's New Graphics Cards Make 'Meaningful Improvement' But Cost More Than Expected

Alibaba Ties Up With Audi, Renault And Honda For AI-powered Tmall Genie Auto Smart Speakers