JPMorgan Raises Etsy’s (ETSY) Price Target Amid Strong Marketplace Performance

On June 4, JPMorgan analysts increased their price target for Etsy, Inc. (NASDAQ:ETSY) to $50 from $42 while maintaining a ‘Neutral’ rating. The firm cited its assessment of Etsy’s position as a significant two-sided marketplace.

A software engineer working on web development for an e-commerce enablement project.

Etsy is a “two-sided marketplace” because it merely connects buyers and sellers. According to the analysts’ estimates, the platform connects nearly 95 million active buyers with over 8 million active sellers. The JPMorgan analysts highlighted the company’s competitive advantages, particularly its ability to leverage data from extensive listings and user base to enhance user experiences. Around 79% of the platform’s gross merchandise sales (GMS) are generated organically, which, the analysts say, demonstrates strong user engagement without heavy reliance on paid marketing.

JPMorgan expects Etsy to benefit from product investments, growth in active buyers, and increased marketing efforts. However, the analysts noted that macroeconomic factors affecting discretionary spending may pose challenges to long-term revenue growth. Despite these headwinds, Etsy maintains strong operational metrics with gross profit margins of 72.3% and adjusted EBITDA margins of 27.8%.

Etsy, Inc. (NASDAQ:ETSY) is an e-commerce company that operates online marketplaces connecting buyers and sellers worldwide. It’s main platform is Etsy, which is a marketplace for handmade and vintage goods. Others are Reverb, a marketplace for musical instruments, and Depop, a fashion resale marketplace.

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Disclosure: None.