Shares of Etsy Inc (NASDAQ:ETSY) tanked in early trading on Thursday after the company reported mixed second-quarter results.
Here are some key analyst takeaways.
- Cantor Fitzgerald analyst Deepak Mathivanan maintained a Neutral rating, while raising the price target from $52 to $64.
- Needham analyst Bernie McTernan reaffirmed a Buy rating, while lifting the price target from $55 to $72.
Check out other analyst stock ratings.
Cantor Fitzgerald: Etsy reported its quarterly gross merchandise sales (GMS) and EBITDA above Street estimates by 2% and 4%, respectively, Mathivanan said in a note. While declines at core Etsy moderated to -5% year-on-year, Depop's total GMS growth accelerated to +35%, with US GMS growing 54%, he added.
The company plans to continue investing in Depop's brand awareness into the back half of the year, the analyst state. The third-quarter guidance is "encouraging and paints an optimistic path for return to positive GMS growth," he further wrote.
Needham: Etsy reported its second-quarter results ahead of expectations, with consolidated GMS declining by 4.8% year-on-year, McTernan said. Both expectations and valuation were "elevated" heading into the earnings release, he added.
Management's third-quarter guidance reflects "another sequential improvement in GMS trends," which is a "good starting point," the analyst stated. The upbeat second-quarter results "support greater confidence in a return to sustainable GMS growth and margin durability," he further wrote.
Price Action: Shares of Etsy had declined by 6.98% to $57.66 at the time of publication on Thursday.
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