Goldman Sachs Reinstates Etsy (ETSY) at Neutral

Goldman Sachs analyst Eric Sheridan reinstates coverage on Etsy (NASDAQ: ETSY) with a Neutral rating and a price target of $89.00.

The analyst comments: “With the close of the Depop divestiture, we reinstate a rating on Etsy (ETSY) at Neutral with an $89 12-month price target. In this note, we frame Etsy’s investment case centered around a handful of key debates: (1) Will their strategic initiatives be enough to meaningfully re-accelerate topline growth? Our view – Work In Progress. Etsy’s GMV and active buyer growth have been muted since 2022, but we acknowledge a recent uptick in buyers in 1H26 and attribute this to a combination of improving execution against management’s strategic initiatives (incl. enhance discovery, search, and personalization); (2) Will we see Adj EBITDA margin expansion amid an investment cycle? Our view - Likely. We expect Etsy’s Adj. EBITDA margin to reach ~32% by 2031 (up from 25.5% in 2025) driven by the sale of Depop, flow through from topline and continued execution despite heightened reinvestment levels around the strategic priorities – the exact pathway on how linear margin trajectory progresses in the medium/long term (against needed levels for growth investments) remains less visible; and (3) How will Etsy perform in a world becoming increasingly centered around agentic shopping? Our view – Likely well. Etsy has intentionally positioned itself to be a share taker and first mover as the world increasingly shifts towards agentic commerce both in terms of off platform partnerships and innovating toward AI increasingly at the center of the consumer experience on property.”

For an analyst ratings summary and ratings history on Etsy click here. For more ratings news on Etsy click here.

Shares of Etsy closed at $68.73 yesterday.

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