Etsy Inc (NASDAQ: ETSY) has received a new initiation of coverage.
Nomura Instinet analyst Mark Kelley initiated coverage on Etsy's stock with a Buy rating and a $70 price target.
Kelley said Etsy has demonstrated consistent management execution since 2017, and has reaccelerated the business through enhanced pricing mechanisms while educating and arming sellers with the right tools to succeed.
“Etsy has proved that the large conglomerate platforms don’t always win, especially when the category is anything but a commodity,” he wrote in a note.
The analyst said some of Etsy’s newly added programs, although very early, are likely to benefit sellers and allow the company to improve its margin profile as GMS growth continues.
“We’re also positive on Reverb, which isn’t baked in Street models and we believe this new category will likely prove that other verticals can be successful on the Etsy platform,” said Kelley.
The analyst is also positive on the newly added free shipping initiative on items over $35, as well as the Etsy Ads product: “While we have yet to see the impact on these initiatives, we believe they’re good for sellers, buyers, and the platform as a whole.”
Etsy shares are up 1.11% at $56.44.
Analysts Cautious About Etsy's Tone Despite Strong Q4 Earnings
Jim Cramer Gives His Opinion On Cronos, Etsy And More
Latest Ratings for ETSY
|Oct 2019||Initiates Coverage On||Buy|
|Sep 2019||Upgrades||Sector Perform||Outperform|
View More Analyst Ratings for ETSY
View the Latest Analyst Ratings
See more from Benzinga
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.