Bank of America Cuts Etsy Price Target to $63 Ahead of Q4 Earnings
Bank of America lowered its price target on Etsy to $63 from $73 and maintained a Neutral rating ahead of the company’s February 19 earnings report. Stifel and Cantor Fitzgerald also trimmed their targets to $62 and $55, respectively, citing e-commerce multiple compression and evolving AI-driven growth prospects.
1. BofA Price Target Cut
On February 11, Bank of America lowered its price target for Etsy to $63 from $73 and maintained a Neutral rating ahead of the February 19 earnings report. The firm cited recent multiple compression across the e-commerce sector as the primary driver of the reduction.
2. Additional Analyst Adjustments
Stifel trimmed its target to $62 from $65 with a Hold rating after noting healthy fourth-quarter metrics for the broader e-commerce group. Cantor Fitzgerald also cut its target to $55 from $64, highlighting lingering macro challenges alongside potential revenue acceleration from AI integration.
3. Growth Outlook and Valuation
Etsy’s two-sided marketplaces—Etsy, Reverb and Depop—are returning to growth with valuations roughly 20% below medium-term ranges. Improved sentiment around AI-driven revenue growth and clearer long-term returns on capital expenditure could support a stronger performance in 2026.