Etsy Is Down 54% This Year, Now A BofA Analyst Has Cut Its Price Target Ahead Of Earnings

Etsy Inc ETSY is scheduled to report its third-quarter earnings on Wednesday, after market close.

The company could beat third-quarter estimates, but there are growing concerns about its performance in the fourth quarter, according to BofA Securities.

The Etsy Analyst: Curtis Nagle maintained a Neutral rating on Etsy, while reducing the price target from $120 to $110.

The Etsy Thesis: The company could report upbeat quarterly results, driven by “a pickup in trends for largest categories” and a strengthening of web traffic data, Nagle said in a note.

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The analyst expressed concern, however, regarding Etsy’s performance in the fourth quarter, given:

• Amazon.com, Inc’s AMZN lower-than-expected retail revenue guidance for the quarter, Nagle stated.
• “Several promotional events by large retailers early in the quarter that could pull consumer demand forward,” he added.
• “Etsy is lapping a large revenue beat driven by supply chain issues for competitors that won’t repeat this year,” the analyst further wrote.

Meanwhile, a Goldman Sachs analyst we more bullish on the stock in a note earlier this month.

ETSY Price Action: Shares of Etsy had declined by 2.23% to $95.73 at the time of publication Monday.

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