2023-04-25 12:25:41 ET
Etsy ( NASDAQ: ETSY ) sales expectations were tempered at Truist on Tuesday as the bank highlighted data checks indicating softening sales trends.
Equity analyst Youssef Squali trimmed gross merchandise sales expectations to $1.68B from $1.74B, citing Truist card data. The updated figure is essentially in line with the analyst consensus according to Visible Alpha.
While Squali maintained a Buy rating, he trimmed his price target alongside the updated sales expectations. The firm’s price target now stands at $125 as compared to a prior $150.
That said, Squali said that sales trends looked as though they were picking up towards the close of the quarter, setting the stage for a stronger Q2. He added that easier year over year comparisons are available for the remainder of 2023.
“April-to-date (thru 4/18) shows some softness in US GMS, but we note that Y/Y comps for May/June get easier,” he wrote in a note on Tuesday. “User metrics (active, habitual and repeat users, GMS/active user) and take rate will be under the microscope, but C1Q23/C2Q23 guide should show that Etsy continues to retain most of the gains achieved during the pandemic, positioning it well for a more normalized setting. Etsy Ads should be a bright spot.”
Read more on the earnings expectations for Etsy ahead of its early May earnings report .
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Etsy estimates reeled in at Truist ahead of earnings