Etsy (NASDAQ:ETSY) was raised to Outperform from Peer Perform at Wolfe Research on Thursday, with analysts assigning a $100 price target on the stock.
The analysts told investors in a note that they see many paths for the company's shares to work.
"At a high-level, we think ETSY shares could outperform under various scenarios. Recovery in discretionary spending when macro improves in FY24 should accelerate GMS/EBITDA growth from current levels," the analysts wrote.
"Alternatively, should macro remain weak, or worsen further, we think ETSY could shift focus towards cost savings and improve margins in the interim."
The analysts believe there is "plenty of opportunity" for Etsy to improve margins, while they also have the potential to improve non-core profitability margins.