Bernstein Maintains a Market Perform Rating on Etsy (ETSY), Sets Price Target at $45

Bernstein SocGen Group maintained a Market Perform rating on Etsy, Inc. (NASDAQ:ETSY) with a price target of $45 on June 5. The analysts observed that growing investor confidence and potential short covering led Etsy shares to climb 32% since last month.

Bernstein analysts noted that the upward momentum in Etsy, Inc. (NASDAQ:ETSY) stock is due to stronger alternative data indicating a slowdown in the annual decline of Gross Merchandise Sales in May. This data demonstrates an optimistic outlook for Etsy's growth, particularly compared to its prior lower trading multiples. The stock has gained significant ground, rising 16.15% over the last week and 16.37% so far this year.

Although the main driver of this upward swing in the stock remains unclear, the analysts commented that lower traffic for Temu, an Etsy competitor, in May could be a catalyst. They also said that possible changes in products listed at Etsy could be behind this positive trajectory.

The report pointed to stronger credit card spending in May and a rise in monthly app usage for Etsy, Inc. (NASDAQ:ETSY), which coincided with Temu witnessing a 43% drop in active users year-over-year. Although the analysts acknowledged that their data might not perfectly match Etsy’s reported Gross Merchandise Sales, the overall signals suggest things are moving in a positive direction.

Etsy, Inc. (NASDAQ:ETSY) runs global online marketplaces that bring together buyers and sellers through its main platform, Etsy, as well as Reverb for musical instruments and Depop for fashion resale.

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