2023-03-09 06:47:06 ET
Jefferies flipped from being bullish on Etsy ( NASDAQ: ETSY ) to becoming bearish with a stinging double downgrade on Thursday.
The firm called out the large valuation premium on Etsy ( ETSY ) in comparison to e-commerce peers and expects downward revisions to consensus earnings estimates due to slowing GMS growth.
Analyst John Colantuoni and team warned that Etsy's ( ETSY ) heavier spending on marketing to slow down its churn rate is putting pressure on EBITDA.
"With more limited take rate upside and deteriorating buyer trends, we see downside to consensus from slowing top line and moderating margin expansion," he noted.
Jefferies assigned a lowered price target of $85 to Etsy ( ETSY ) vs. the 52-week trading range of $67.01 to $151.50 Shares of Etsy ( ETSY ) fell 5.69% in premarket action to $107.00.
Seeking Alpha author Ironside Research issued a bear call on Etsy ( ETSY ) in late February.
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Etsy falls 6% after double downgrade from Jefferies