Analyst action and market reaction
Bernstein SocGen Group has reaffirmed a Market Perform rating on Etsy Inc. and held its price target at $60.00 after the company reported fourth-quarter 2025 results and disclosed the sale of Depop to eBay. The research team characterized Etsy’s Q4 performance as largely in line with their expectations.
The company’s stock appreciated sharply in the prior week, rising 14.1%, and was trading at $52.18 with a market capitalization of $5.02 billion at the time the analyst note was issued. Bernstein SocGen highlighted that the Depop transaction will deliver a meaningful cash inflow to Etsy - roughly equivalent to 20% of the firm’s market capitalization - which the firm said makes the equity more interesting near-term.
Strategic implications of the Depop sale
Bernstein SocGen framed the Divestiture of Depop to eBay as a move that unlocks intrinsic value and refocuses management attention on Etsy’s core marketplace. The firm emphasized that freed resources and capital should allow greater emphasis on product roadmap priorities and efforts to retain and engage buyers on the main platform.
The analysts also noted public commentary from Etsy about initiatives involving artificial intelligence, with plans for AI applications both for first-party features and for third-party usage across the platform.
Financial profile and valuation context
According to the InvestingPro analysis referenced by the research note, Etsy reports a gross profit margin of 71.6% and appears undervalued on the basis of Fair Value metrics. The platform offers an expanded Pro Research Report on ETSY, which the firm said provides additional detail on the company’s financial condition and growth prospects.
Bernstein SocGen stressed that, over a longer horizon, the stock price and valuation multiple will ultimately be determined by the underlying performance of Etsy’s core marketplace business. Specifically, the firm identified the company’s ability to reestablish consistent gross merchandise sales (GMS) growth as the key driver.
Near-term outlook and guidance
The analysts acknowledged that active-buyer trends and Etsy’s guidance for the first quarter of 2026 offered some degree of relief to investors. At the same time, they cautioned that difficult year-ago comparisons complicate the near-term outlook for growth and performance.
Additional analyst reactions and revisions
Other firms weighed in following Etsy’s fourth-quarter results, which delivered mixed signals across key metrics. Gross merchandise sales and revenue missed expectations, while EBITDA beat prior estimates, according to commentary from Cantor Fitzgerald and Stifel.
Truist Securities highlighted a year-over-year increase in core Etsy Marketplace GMS excluding Depop, along with a sequential rise in active buyers. Needham noted that the Depop sale affected Etsy’s financial profile and attributed a 7% upward adjustment to its 2026 EBITDA estimates to that transaction.
Several brokerages updated price targets in response to the company’s results and the Depop deal. Stifel reduced its target to $55 while maintaining a Hold rating. Truist Securities raised its target to $83 and kept a Buy rating. Canaccord Genuity lowered its target to $72 but remained Buy, citing slight GMS increases tied to favorable foreign exchange. Needham adjusted its target to $65, explicitly referencing the impact of the Depop sale. Cantor Fitzgerald cut its target to $51 and maintained a Neutral rating, while noting modest improvement in the decline of core Etsy Marketplace sales.
Bottom line
Bernstein SocGen’s decision to keep a Market Perform rating and a $60.00 price target reinforces the firm’s view that the Depop sale is a material near-term development for Etsy but that the longer-term valuation hinges on the company’s ability to restore steady gross merchandise sales growth. The combination of a material cash infusion, continued focus on marketplace execution and announced AI initiatives frames the company’s immediate prospects, even as difficult comparisons complicate short-term visibility.