In effect, the broker accused the stock of running out of ideas for upside.
The share price came off 0.7% to $32.84.
Separately, Pfizer lost its appeal in a patent case over its pain drug Lyrica in a UK court, but said it would seek a further appeal.
“We expect Etsy to grow above an accelerating ecommerce market for a few more quarters as its seller services penetrate the installed base,” the broker said in a note.
Etsy shares were 1.4% lower at $14.90.
Talking of online marketplaces, Wedbush also said it was assuming coverage of eBay (NASDAQ:EBAY) with a Neutral recommendation and $34 price target.
Wedbush’s take on eBay was not dissimilar to its view on Etsy: “We believe eBAY will continue to benefit from the secular growth of ecommerce as initiatives such as site/mobile improvements and structured data help slow the rate of market share erosion.”
eBay shares were 0.3% higher at $31.60.