Citi analyst Ygal Arounian maintained a Hold rating on Etsy (ETSY – Research Report) today and set a price target of $56.00.
Ygal Arounian has given his Hold rating due to a combination of factors impacting Etsy’s growth outlook. He remains cautious about the Gross Merchandise Sales (GMS) trajectory, highlighting ongoing macroeconomic challenges that affect discretionary consumer spending. Arounian points out that while Etsy is making strategic investments in its platform, such as revamping its search capabilities, enhancing its loyalty program, and evolving Gift Mode, it is yet to be seen how these efforts will offset the broader economic pressures.
Furthermore, Arounian notes that investors are wary of Etsy’s Total Addressable Market (TAM) opportunities and are looking for indications of a turnaround in GMS growth. The report also mentions potential impacts from policy changes and regulatory shifts, such as tariffs and changes to TikTok, which could influence market sentiment. With new leadership in key positions, including a new CFO and Chief Growth Officer, any strategic shifts in 2025 will be closely monitored, but for now, uncertainty keeps the rating at Hold.
In another report released on January 30, Bernstein also maintained a Hold rating on the stock with a $55.00 price target.