Etsy (NASDAQ:ETSY) shareholders should expect more modest fourth quarter 2022 results after an Omicron-driven surge in demand in 2021, analysts at Canaccord said.
Acknowledging a “difficult” year-over-year comparable, Canaccord noted that Etsy (NASDAQ:ETSY) management previously revealed that trends improved in October relative to Q3.
“We think a note of caution is appropriate given the consumer softness underlying Amazon's modest Q4 results and Q1 guidance,” analysts wrote.
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“With shares trading at premium valuations and well above their 52-week low, the bar may be somewhat high for results that can keep the stock at current levels, although dynamics should improve in subsequent quarters with GMS expected to return to growth in Q2 and accelerate thereafter.
“Additionally, over time we expect an increasing impact from new product features and brand investments on buyer acquisition and purchase frequency, which should drive upward estimate revisions.”
Analysts are expecting 4Q revenue somewhere around $754 million, with an adjusted EBITDA profit of $208 million.
Canaccord has a 'Buy' rating and a $160 price target on Etsy (NASDAQ:ETSY) stock, which is currently trading around $126 on the Nasdaq.
Etsy (NASDAQ:ETSY) is slated to report its 4Q earnings on Wednesday after the market closes.
Contact Angela at angela@proactiveinvestors.com
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