Investors should consider buying Etsy, as the stock could see big gains in the future, according to JMP Securities. Analyst Nicholas Jones, which began covering Etsy with better ratings than the market, said in a note Wednesday that the e-commerce company is attracting more repeat buyers during the pandemic. Translate. “ETSY’s platform is one of the best performing during and out of the pandemic,” Jones wrote. “We consider the increase in brand awareness to be long-term, not temporary, and see many opportunities for ETSY to continue driving GMV’s growth through further improving brand awareness. brands, geographic expansion, and technology investment.” JMP has delivered a price target of $125, 54% above Tuesday’s closing price. The company sees challenges ahead for e-commerce as rising inflationary pressures and the potential for a recession could hurt Etsy and its peers. Going forward, analysts also expect consumers to spend more on travel and experiences than buying goods sourced online. However, it said Etsy is at an early stage in an area with a large total market that can be addressed, especially as shoppers develop a preference for made-to-order goods. According to a JMP analysis, Etsy will control 8% of the $300 billion total addressable market by 2025. While JMP’s TAM estimate is lower than Etsy’s, they believe the company has “many runways.” ” to gain market share. “Overall, we see ETSY being structurally benefiting from pandemic conditions, going from a background of less interest to one of the more focused platforms for eCommerce,” Jones said. . “While likely to be more muted in the near term, as consumers spend their disposable income on travel and offline, we look to ETSY to continue to convert positive buyers become a regular and repeat buyer in the medium term.” — Michael Bloom of CNBC contributed to this report.
