Etsy Inc. (ETSY:NSD) Analysts are bullish with 40 percent upside

STA Research
by: STA Research
Etsy Inc.

Based on the Etsy stock price forecast from 19 analysts, the average analyst Etsy price target is USD 135.81 over the next 12 months. Etsy Inc’s average analyst rating is Buy. Stock Target Advisor’s own Etsy stock price forecast is Slightly Bullish, which is based on 9 positive signals and 6 negative signals. At the last closing, Etsy Inc stock price was USD 95.50Etsy Inc stock price has changed by +2.84% over the past week, +14.85% over the past month and -52.94% over the last year.

Etsy, Inc. operates two-sided online marketplaces that connect buyers and sellers primarily in the United States, the United Kingdom, Germany, Canada, Australia, France, and India. Its primary marketplace is Etsy.com that connects artisans and entrepreneurs with various consumers. As of December 31, 2021, it connected a total of 7.5 million active sellers to 96.3 million active buyers; and had 120 million items for sale. The company was formerly known as Indieco, Inc changed its name to Etsy, Inc. in June 2006. Etsy, Inc. was founded in 2005 and is headquartered in Brooklyn, New York.

 

What we like:

High market capitalization:

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns:

The Etsy price target has performed well, on a risk adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Superior return on equity:

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization:

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets:

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow:

The Etsy Inc stock price had positive total cash flow in the most recent four quarters.

Positive free cash flow:

The Etsy Inc stock price had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth:

The Etsy Inc stock price has shown top quartile earnings growth in the previous 5 years compared to its sector.

High Gross Profit to Asset Ratio:

The Etsy Inc stock price target is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

High volatility:

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings:

The Etsy Inc stock price is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value:

The Etsy Inc stock price is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis:

The Etsy Inc stock price is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Highly leveraged:

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the Etsy stock price forecast and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis:

The Etsy Inc stock price is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Disclaimer

Stock Target Advisor is not a broker/dealer, investment advisor, or platform for making stock buying or selling decisions. Our goal is to democratize and simplify financial information through automated analysis, aggregation of stock information, and education to help investors with their research. No content on our site, blogs or newsletters constitutes – or should be understood as constituting – a recommendation to enter into any securities transactions or to engage in any of the investment strategies presented in our site content. We also cannot guarantee the accuracy of any information presented on our site and in our analysis.

Leave a Reply

Your email address will not be published.