Etsy Has A 'Secret Sauce' That Should Drive Upside: Analyst - Etsy (NASDAQ:ETSY)

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Shares of Etsy Inc ETSY spiked in pre-market trading on Wednesday.

The New York-based company exited the pandemic stronger and has been able to hold onto the pandemic gains, according to Needham.

The Analyst: Anna Andreeva upgraded the rating for Etsy from Hold to Buy, while establishing a price target of $160.

Check out other analyst stock ratings.

The Thesis: Positive earnings revisions and multiple expansion could drive the company’s share upside going ahead, Andreeva said.

“ETSY has done a commendable job holding on to pandemic buyers in ’22, when reopening headwinds were significant — since ’19, repeat buyer penetration is up 800 bps, while habitual buyers increased by over 200% and reactivated buyers are up ~900k y/y YTD (and company now has better tools to reactivate ~100M buyers lapsed in the last 12-18 months),” the analyst wrote.

“While macro overhang remains, we think Etsy’s secret sauce is diversification of categories and relative value prop — with ecomm penetration expected to bounce back in ’23, we think ETSY should be gaining share again,” she added.

ETSY Price Action: Shares of Etsy rose by 3.12% to $117.10 in premarket trading on Wednesday.

Image via Etsy

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Image and article originally from www.benzinga.com. Read the original article here.