A number of negative catalysts are set to drive shares of Etsy lower, according to Goldman Sachs.
Analyst Eric Sheridan downgraded the e-commerce stock to sell from neutral and slashed his price target by $25 to $45, which implies more than 9% downside from Monday's close.
ETSY YTD mountain ETSY, year-to-date With that, Sheridan thinks that Etsy will continue to lose market share in the years to come, seeing low-single-digit buyer growth over time.
"On net, we believe that the analysis points to a lower likelihood of ETSY meaningfully compounding GMS above long-term Street estimates."
Specifically, he believes that margins could be pressured if Etsy "leans further into investments to stimulate growth."
Persons:
Goldman Sachs, Eric Sheridan, Sheridan, Etsy, it'll
Locations:
HundredX