Why are the analysts bullish?
About 56.0% of the nine analysts covering Etsy (ETSY) stock recommended a “buy” as of September 13. Another 33% of analysts recommended “hold” on the stock, and the remaining 11% analysts rated it as a “sell.” Analysts are bullish for Etsy, as the company’s strategic efforts are heading in a positive direction.
There have been two price changes for the stock in the last 30 days. On September 13, Wedbush initiated coverage on the stock with a “neutral” rating and a price target of $50.00. D.A. Davidson upped the price target to $59.00 from $53.00. Currently, Etsy’s mean target price is $49.60, which indicates a 1.9% downside to the price of the stock on September 13.
Etsy has been doing well for quite some time. Last year, the company started exploring strategic alternatives after being encouraged by activist investors. Etsy took up aggressive cost cuts, made managerial changes, and is investing heavily in improving its digital platform. This has reflected in the financial performance. In the trailing four quarters, the company has beaten its revenue estimates.
What is Wall Street saying about Etsy’s peers?
For Wayfair (W), 58% of the 26 analysts covering the stock recommend a “hold.” Another 38% recommend a “buy.” Wayfair’s mean target price is 125.71, which indicates a 15.1% downside to the stock price on September 13.
For Alibaba (BABA), 95% of the 44 analysts covering the stock given it a “buy” rating, and 5% rated it a “hold.” Alibaba’s mean target price is $230.95, which indicates a 37.6% upside.
For eBay (EBAY), 57% of the 37 analysts covering the stock gave it a “buy” rating and another 41% rated it as a “hold.” eBay’s mean target price is $44.16, which indicates a 28.2% upside.
For Overstock (OSTK), 67% of the three analysts covering the stock gave it a “buy” rating and another 33% rated it as a “hold.” Overstock’s mean target price is $93.50, which indicates a 243.1% upside.