Etsy Expects Positive GMS Growth In Q3, Analysts Raise Price Targets

Core Insights - Etsy Inc's shares dropped significantly after the company reported mixed second-quarter results, with a decline of 6.98% to $57.66 at the time of publication [4]. Financial Performance - Etsy's quarterly gross merchandise sales (GMS) and EBITDA exceeded Street estimates by 2% and 4%, respectively [2]. - The consolidated GMS for Etsy declined by 4.8% year-on-year, while core Etsy's decline moderated to -5% [3]. - Depop's total GMS growth accelerated to +35%, with US GMS growing by 54% [2]. Future Outlook - Management's third-quarter guidance indicates another sequential improvement in GMS trends, suggesting a positive path for return to GMS growth [4]. - Analysts express greater confidence in a return to sustainable GMS growth and margin durability based on the upbeat second-quarter results [4]. Analyst Ratings and Price Targets - Cantor Fitzgerald analyst Deepak Mathivanan maintained a Neutral rating and raised the price target from $52 to $64 [5]. - Needham analyst Bernie McTernan reaffirmed a Buy rating and lifted the price target from $55 to $72 [5].