Etsy (NASDAQ:ETSY) Inc shares climbed Thursday after the eCommerce company topped fourth quarter revenue expectations and drew the praise of Oppenheimer analysts.
The company posted net revenue of $807.2 million, up from $717.1 million a year earlier and well ahead of Street expectations of $751.8 million.
Etsy (NASDAQ:ETSY) acquired roughly 9.5 million new buyers in the fourth quarter, and while new buyers fell year-over-year, the company pointed to new buyer acquisitions increasing 60% from the fourth quarter of 2019; meaningfully elevated compared to pre-pandemic periods.
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Shares of Etsy were up 1.6% to $130.49 Thursday afternoon, but analysts at Oppenheimer think that’s only going to get higher.
In a note following the results, Oppenheimer reiterated its 'Outperform' rating for the stock and upped its price target to $155 from $150.
“Etsy continues to show sustainability,” analysts said. “[D]espite reopening/shift to services headwind, revenue increased 13% year-over-year, reflecting value to seller community and destination to consumers.”
The firm pointed to increased seller fees and ads, which more than offset the weakness in gross merchandise sales (GMS).
The price target increase came even as Oppenheimer softened its outlook.
“Conservatively, we're lowering our second-half GMS growth estimate to 8% from 11%, even though results have exceeded guidance, and lowering 2023 GMS 2%, while revenue is largely unchanged on higher take-rate,” analysts said.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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