On Monday, Truist Securities maintained its Buy rating and $85.00 price target for Etsy (NASDAQ:ETSY), citing an encouraging analysis of recent credit card transaction data. The firm’s assessment showed a notable increase in consumer demand as observed through their card data tracking, particularly after a sluggish start to the year in January.
The data indicated that February experienced a significant uplift in activity, which was partly attributed to the additional day in the leap year. This positive trend has reportedly continued into March, with data available up to March 12. Although the company is expected to slightly outperform expectations, Truist Securities noted that Etsy faces more challenging year-over-year comparisons in March.
The increase in order frequency during January and February was highlighted as a sign of robust fundamentals for Etsy, despite the broader economic headwinds. Truist Securities expressed confidence in Etsy’s positioning for potential growth as the economic climate stabilizes.
With Etsy’s valuation currently standing at 12.9 times enterprise value to adjusted earnings before interest, taxes, depreciation, and amortization (EV/AEBITDA) and offering a free cash flow (FCF) yield of 6%, Truist Securities views the stock’s valuation as attractive. The firm's stance suggests optimism for Etsy's performance and potential for investors, as reflected in the maintained price target and rating.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.