E-commerce retailer focused on handmade or vintage items, Etsy (NASDAQ: ETSY) was up in pre-market trading on Tuesday after top-rated Piper Sandler analyst Edward Yruma upgraded the stock to a Buy from a Hold and raised the price target to $140 from $135. Yruma’s price target implies an upside potential of 29.3% at current levels.
The analyst expects Etsy’s active buyers to increase over the medium term and while the macro environment “remains choppy”, the company’s EBITDA margin and long-term growth opportunities remain intact and the stock’s valuation is “compelling” at current levels.
Analysts are cautiously optimistic about ETSY stock with a Moderate Buy consensus rating based on 13 Buys, eight Holds, and one Sell.