Etsy Shares at Record Amid Booming Sales
Etsy (ETSY) - Get Report shares touched a record Tuesday as the online arts and crafts retailer makes hay out of the covid pandemic.
The Brooklyn, N.Y., company hit a peak of $211.85 on Tuesday and recently traded at $208.52, up 14%.
It has well more than quadrupled over the past 12 months as consumers kept home by the pandemic have flocked to its wares.
Jefferies analyst John Colantuoni raised his target price Monday to $205 from $168 and kept his buy rating.
Etsy’s sales growth is “defying gravity,” he wrote in a commentary cited by Bloomberg.
Its website traffic for November and December almost doubled, “the highest level of growth since we first started tracking the metric two years ago,” he said. That indicates online buying “has permanently increased,” with Etsy “a primary beneficiary.”
The company’s revenue doubled to $1.1 billion in the first nine months of 2020 from the year-earlier period.
Etsy drew mixed commentary from analysts after its most recent earnings report in October.
Deutsche Bank analysts said that while Etsy’s third-quarter results beat Wall Street estimates, that was expected based on third-party data. And the company provided conservative fourth-quarter guidance.
But DA Davidson analysts said, “we would take advantage of the pullback on the potential for upside to the fourth-quarter 2020 results and sustained benefits from covid-19 (increases in its: a) total addressable market, b) purchase frequency, and c) unaided awareness).”
Canaccord Genuity analysts said Etsy continued to deliver exceptional growth in the third quarter.
