Market Overview

KeyBanc Optimistic On Etsy's Long-Term Growth After Meeting CEO

KeyBanc Optimistic On Etsy's Long-Term Growth After Meeting CEO

Recent discussion with Etsy Inc (NASDAQ: ETSY) CEO Josh Silverman highlighted the company’s long-term growth opportunity, although there are both tailwinds and headwinds in the near term, according to KeyBanc Capital Markets.

The Analyst

KeyBanc’s Edward Yruma maintained an Overweight rating on Etsy and a price target of $90.

The Thesis

Although adoption of free shipping is likely to translate to both tailwinds and headwinds for Etsy in the near term, this would be a key growth driver in the company’s Gross Merchandise Sales (GMS) in the longer term, Yruma said.

He added that recent discussion with CEO Josh Silverman gave more confidence on Etsy’s long-term growth opportunity.

Changes to search and listing are already underway. Etsy prioritizing free shipping over conversion in listing could result in some near-term headwinds, the analyst explained. He added, however, that these would normalize as adoption increases.

“Baskets close to the $35 free shipping threshold tend to see incremental purchases in an effort to hit the hurdle,” Yruma wrote in the note.

The acquisition of Reverb is relatively low risk and “demonstrates the extensibility” of Etsy’s operating model and that the company could become a preferred acquirer, Yruma mentioned, while adding that Etsy had already deployed its internal engineering talent to augment the Reverb team.

Price Action

Shares of Etsy were up 1.02% at $54.46 at the time of publishing on Thursday.

Related Links:

10 Biggest Price Target Changes For Friday

Benzinga's Top Upgrades, Downgrades For September 20, 2019

Latest Ratings for ETSY

Dec 2019Initiates Coverage OnBuy
Dec 2019DowngradesEqual-WeightUnderweight
Oct 2019MaintainsEqual-Weight

View More Analyst Ratings for ETSY
View the Latest Analyst Ratings

Posted-In: Edward Yruma KeyBanc Capital MarketsAnalyst Color Reiteration Analyst Ratings


Related Articles (ETSY)

View Comments and Join the Discussion!

Latest Ratings

YAYOAegis CapitalInitiates Coverage On3.3
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
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.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
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