Wolfe Research upgraded shares of Etsy , saying the one-time pandemic darling down nearly 50% this year is ready for a sizeable comeback.
The firm raised its rating on Etsy to outperform from peer perform and set a $100 price target, representing more than 54% upside over the next 12 months.
ETSY 5Y mountain Etsy - 5 years Etsy shares are down 46% so far in 2023 and about 80% from their pandemic high as inflation crimped consumers' wallets and investors dumped growth stocks in the wake of higher interest rates.
Wolfe gave three reasons why the stock could rebound: a recovery in consumer spending with the improving economy, margin improvement potential and a better focus on its core franchise.
"Our scenario analysis suggests that there are several paths for ETSY to reach over $850m in EBITDA in FY24," the note stated.
Persons:
Wolfe, Deepak Mathivanan
Organizations:
Wolfe Research
Locations:
EBITDA