Analyst Eric Sheridan downgraded the e-commerce stock to sell from neutral and slashed his price target by $25 to $45, which implies more than 9% downside from Monday's close. The stock fell more than 4% in the premarket following the call. Shares have had a tough year, losing nearly 39%. But Sheridan sees further losses ahead thanks to an "unfavorable" risk-reward profile.
"We monitor consumer survey data from HundredX, which currently does not suggest an imminent positive inflection in purchase intent." ETSY YTD mountain ETSY, year-to-date With that, Sheridan thinks that Etsy will continue to lose market share in the years to come, seeing low-single-digit buyer growth over time. "We expect that active buyer growth will remain the largest determinant of the level of GMS growth," he said.