Bank of America Upgrades Etsy to Buy, Lifts Price Target to $105

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Summary · why it matters

Bank of America upgraded Etsy to Buy and raised its price target to $105 from $88, sending shares higher Thursday. The new target implies roughly 30% upside from Wednesday's close, with analyst Michael McGovern arguing recent growth is becoming more structural than temporary. BofA raised its fiscal 2027 gross merchandise sales growth estimate to 4.5% from 3.0%, and now expects EBITDA of $912 million, above the Street's $899 million estimate, with non-GAAP net income of $676 million versus consensus of $652 million. The bank also sees the sale of Depop giving Etsy roughly $1 billion of additional capital-return flexibility.

Impact on assets 2

Consumer Discretionary▲
Etsy, Inc.
ETSY
▲ PositiveCapitalrelevance

Upgraded to Buy with price target raised to $105, citing structural growth and higher estimates.

Financials▲

Off-coverage companies 1

Depopi
Private▲ PositiveCapitalrelevance

Sale of Depop mentioned as providing Etsy capital-return flexibility, indirectly positive for Depop.