By Sam Boughedda
Investing.com — Etsy Inc (NASDAQ:ETSY) shares are down over 1% Thursday despite KeyBanc upgrading the stock to overweight with a price target of $200
Analyst Edward Yruma said in a note to clients that the e-commerce company "has some of the most compelling long-term secular growth opportunities," while adding that KeyBanc's downgrade of the stock to sector weight in April last year was based on increasingly difficult sales and margin comparisons.
"We are largely through this period (1Q22 will have the toughest comparison) and we believe management set guidance reasonably for 4Q21. Our Key First Look Data has pointed to stable to improving q/q trends," explained Yruma.
"Longer term, we are increasingly constructive on continued increases in habitual buyers (8M as of 3Q21) and potential TAM expansion via Depop."
Elsewhere, Jefferies analyst John Colantuoni trimmed the firm's price target on Etsy to $240 from $275, telling investors in a note that poor sentiment for growth stocks could pressure the company's near-term valuation.