🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

Goldman Sachs raises Etsy stock price target, maintains Sell rating

EditorNatashya Angelica
Published 10/31/2024, 08:38 PM
ETSY
-

On Thursday, Goldman Sachs updated its assessment of Etsy (NASDAQ:ETSY) shares, increasing the online marketplace's stock price target to $47.00, up from the previous $45.00, while keeping a Sell rating on the stock. The firm's analysis followed Etsy's third-quarter earnings report, which revealed a mix of performance indicators.

Etsy reported a year-over-year decline of 4% in its Gross Merchandise Sales (GMS) for the third quarter, with a sharper 6% drop in its core marketplace GMS. The company's guidance for the fourth quarter suggests a continued decline in GMS, expecting a low-single-digit to mid-single-digit percentage decrease year-over-year.

Despite these trends, Etsy's third-quarter revenue outperformed expectations, achieving a record take rate of 22.7%, buoyed by growth in both marketplace and services revenue.

The company's profitability in the third quarter also exceeded forecasts, bolstered by improved cost control measures. Moreover, Etsy's acquisition, Depop, showed robust operating momentum, with GMS acceleration in the third quarter and projections for over 30% year-over-year growth in the fourth quarter.

Etsy's commitment to shareholder value was also evident through its share repurchase activities during the quarter and the announcement of a new $1 billion share buyback authorization by its board.

Looking ahead, Goldman Sachs anticipates that Etsy's marketplace GMS will remain a critical metric for investors as they monitor the downward trend into the fourth quarter. The potential range of adjusted EBITDA margin outcomes for 2025 is also expected to draw investor attention, considering the current pace of expense growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.