Retail Traders Turn Bullish On Etsy Following Analyst Move Amid Macro Challenges

Shares of Etsy Inc. (ETSY) were in focus on Wednesday after the crafts retailer received a ratings initiation by JP Morgan, lifting retail sentiment.

The move comes after Etsy’s recent stock price drop to a 52-week low.

JPMorgan analyst Bryan Smilek assigned a ‘Neutral’ rating with a $50 price target, The Fly reported. JPMorgan said macro headwinds and competition are impacting Etsy’s business, but thinks its sales trends “could improve sequentially throughout 2025,” said the report.

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He noted Etsy’s social commerce offering has shown improvements but its consolidated gross merchandise sales have declined year-over-year from 2022 to 2024, due to economic challenges and stiff competition.

Separately, Loop Capital analyst Laura Champine gave a ‘Sell’ rating with a $40 price target following the company's Q4 results, citing a slowdown in new buyers in Q4 in both U.S. and international markets

For the fourth-quarter, Etsy’s revenue and gross merchandise sales fell short of Wall Street estimates.

Its revenue stood at $852.16 million, missing estimates of $861.58 million. Earnings per share stood at $1.03, surpassing estimates of $0.92, according to Stocktwits data.

Etsy’s Q4 gross merchandise sales declined 6.8% year-over-year to $3.7 billion, driven by weak spending on handcrafted items and gifts. The figure was below Wall Street expectations of GMS of $3.8 billion.

Following the results, Bernstein analyst Nikhil Devnani lowered the firm's price target to $50 from $55 with a ‘Market Perform’ rating. He warned about "the uncomfortable reality" of the uncertainty of how and when Etsy may see a turnaround.

Sentiment on Stocktwits was bullish compared to neutral a week ago. Message volume was extremely low compared to normal in the same period.

One bullish watcher was adding the stock, citing its recent 52-week low.

Another trader also cited initiating a long position.

Etsy stock is down 15% year-to-date.

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