Etsy's Strategic Layoffs Signal Short-Term Struggles with Hope for Future GMS Growth, Analysts Say
Portfolio Pulse from Vandana Singh
Etsy Inc (NASDAQ:ETSY) is laying off 11% of its workforce due to a slowdown in consumer spending and increased competition. The company expects to incur $25-30 million in charges, mostly in Q4 2023. Wedbush views the layoffs as prudent given current demand trends and competitive pressures, maintaining a Neutral rating but raising the price target from $60 to $90. Raymond James remains optimistic with an Outperform rating and a price target increase from $70 to $90. KeyBanc maintains a Sector Weight rating and slightly lowers FY24 revenue and EBITDA estimates. ETSY shares dropped 2.42% to $81.94.
December 14, 2023 | 6:24 pm
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Etsy is facing short-term challenges with layoffs and competition, but analysts see potential for future growth. Wedbush and Raymond James have raised price targets, while KeyBanc has slightly lowered growth estimates.
The layoffs and competitive pressures suggest short-term struggles for Etsy, which is reflected in the stock's recent price drop. However, analyst upgrades in price targets indicate a belief in the company's long-term potential, which may mitigate the negative impact.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100