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Analysts Revise Etsy’s Target Price Upward after Second Quarter

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Target price raised

On August 6, Etsy (ETSY) reported its second-quarter results. Since then, there have been quite a few target price revisions. On August 7, Stifel increased its price target to $46 from $37. D.A. Davidson upped its target price to $53 from $51. On August 6, Keybanc upped its price target to $51 from $48, while RBC raised its target price to $45 from $42.

Currently, analysts’ target price for Etsy is $48.44, which reflects a 10.5% downside to the price of the stock on August 7.

After Etsy’s second-quarter results, 56% of the nine analysts covering the stock are recommending a “buy” as of August 7. Another 33% are recommending a “hold,” and the rest are recommending a “sell.”

Etsy’s second-quarter revenue rose 30.2% YoY (year-over-year) to $132.4 million and beat analysts’ estimate by 4.2%. The company’s strategic initiatives are paying off. However, its adjusted EPS of $0.03 was lower than the consensus estimate of $0.04 and Q2 2017 EPS of $0.10, mainly due to unfavorable foreign exchange.

Analysts’ ratings for peers

For eBay (EBAY), 57% of the 37 analysts covering the stock gave it a “buy” rating. Another 41% rated it a “hold.” eBay’s mean target price is $44.41, which indicates a 31.5% upside to the price of the stock on August 7.

For Wayfair (W), 52% of the 25 analysts covering the stock recommend a “hold.” Another 44% recommend a “buy.” Wayfair’s mean target price is 121, which indicates a 5.3% upside to the price of the stock on August 7.

For Alibaba (BABA), 96% of the 45 analysts covering the stock have given it a “buy” rating, and 4% have rated it a “hold.” Alibaba’s mean target price is $238.32, which indicates a 32.5% upside to the price of the stock on August 7.

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