Etsy Inc (NASDAQ:ETSY) reported earnings after the close yesterday and results widely topped expectations. The internet marketplace operator's top- and bottom-line figures blew past estimates in the fourth quarter, driven by more than $1 billion in gross merchandise sales (GMS). The full-year sales forecast was also stronger than analysts expected, prompting a few to upwardly revise their outlooks on ETSY stock.
Specifically, D.A. Davidson and KeyBanc both raised their price targets to $28, with the latter firm citing an improved shopping experience on the site and future use of artificial intelligence (AI) to help users. Meanwhile, the shares also received price-target hikes to $24 from Stifel and RBC.
This could be just the first wave of bull notes for the outperforming equity. For instance, Etsy stock has enjoyed a steady rise over the past year, on pace for a fourth straight positive quarterly close, while hitting a two-year high of $22.34 on Feb. 21. Last night, the stock closed at $21.03, up 64.4% over the past year, and is now on pace to open 16.5% higher.
Despite all this, analysts are overwhelmingly bearish. There are 11 brokerage firms in coverage, and just three say to buy the stock. Plus, the shares are on pace to open above the average 12-month price target of $22.32. As such, future upgrades and price-target hikes seem like a strong possibility.