Etsy ( NASDAQ: ETSY ) moved higher in early trading on Wednesday after Evercore ISI indicated that recent data points on app downloads and engagement imply positive trends and potential market share gains for the quarter
"ETSY’s Q4TD:22 U.S. App Downloads grew 29% Y/Y (1 pt accel on a 22-pt tougher comp) and were 259% above the same period in 2019 (pre-COVID) levels, marking a meaningful improvement from Q3," observed analyst Shweta Khajuria.
Of note, Etsy's ( ETSY ) U.S. monthly average users tally grew 24% year-over-year so far in Q4 to mark a 9-point acceleration on an 8-point tougher comparison from a year ago.
While Q4 Street estimates on Etsy ( ETSY ) look reasonable to Evercore, the firm sees some downside risk to the Street’s 2023 GMS estimates against a potentially difficult macro environment. In terms of valuation, at 23x 2023 EBITDA, Evercore believes the risk-reward profile is balanced at current levels. That leads to a near-term Tactical Underperform rating on Etsy ( ETSY ) and long-term Outperform rating.
Shares of Etsy ( ETSY ) rose 2.27% premarket to $129.99 vs. the 52-week trading range of $67.01 to $232.98.
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Etsy gains after Evercore data read indicates strong trends