- Needham analyst Anna Andreeva downgraded Etsy, Inc (NASDAQ:ETSY) from Buy to Hold.
- While shares have lagged and some near-term volatility is arguably in the stock, she views the discretionary nature of the ETSY model as increasingly at risk in the near term.
- While visibility is low, she thought that consensus GMS and Sales estimates could be optimistic for 2H22 and especially for '23.
- She noted that elevated inventories across retail could make Etsy's value proposition less compelling.
- Longer-term, she still views ETSY as unique with a significant opportunity to drive frequency for buyers and sellers.
- Andreeva cut her '22/'23 GMS estimates below consensus; with no additional tax attributes remaining, the effective tax rate could swing to 15%-17% in '23.
- She estimates a $0.35 headwind to '23 EPS.
- Price Action: ETSY shares traded lower by 3.49% at $80.70 in the premarket on the last check Monday.
- Photo via Wikimedia Commons
