Etsy's Long-Term Growth Prospects Strong But Near-Term Risks A Matter of Concern: Analyst
Portfolio Pulse from Lekha Gupta
Wedbush analyst Seth Basham initiates coverage on Etsy Inc (NASDAQ:ETSY) with a Neutral rating and a price target of $70. The analyst sees long-term growth opportunities for Etsy in the U.S. but is concerned about near-term risks. Despite volatile demand, Etsy has maintained most gross merchandise sales (GMS) and customer tailwinds. The company's investments in AI and Machine Learning could enhance the platform experience and increase purchase frequency. However, the analyst anticipates additional pressure on Etsy in the remainder of 2023 due to a decline in website traffic and increasing gas prices.
October 02, 2023 | 6:14 pm
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Etsy's long-term growth prospects are strong, but near-term risks are a concern. The company's investments in AI and Machine Learning could boost the platform experience and purchase frequency. However, a decline in website traffic and increasing gas prices could put pressure on the company.
The analyst's neutral rating indicates uncertainty about Etsy's near-term performance. While the company's long-term growth prospects are strong, near-term risks such as a decline in website traffic and increasing gas prices could negatively impact the company's performance.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100