Needham turned more bullish on Etsy Inc. (NYSE:ETSY) after first-quarter earnings, saying the online marketplace may have reached a key growth inflection point.
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The firm reiterated its Buy rating and raised its price target to $85 from $65, implying upside from Etsy’s recent price of $64.00.
Analyst Bernie McTernan said the company’s first-quarter performance showed Etsy is “filling the growth hole” left by Depop on its own, helped by improving marketplace trends and stronger product execution.
Needham said Etsy’s core marketplace delivered its fourth straight quarter of year-over-year acceleration and returned to positive gross merchandise sales growth for the first time in nearly three years.
Mobile App Momentum Drives Bullish View
The firm attributed the improvement less to a broad consumer rebound and more to Etsy’s technology investments, including better discovery, personalization and app engagement.
The mobile app stood out as a key driver. Needham said the app is now nearing 50% of GMS and grew double digits, with app GMS up 11.2% …