Stifel reduced its price target on Etsy to $62.00 from $65.00 but kept a Hold rating on the e-commerce marketplace's stock. The move comes even as the firm left its underlying financial estimates intact, reflecting a cautious stance despite encouraging user engagement signals.
Etsy shares are currently quoted at $57.83 and are trading below their Fair Value, according to available valuation indicators, even with recent price swings. Stifel analyst Mark Kelley pointed to third-party data showing robust monthly active user (MAU) gains for both the primary Etsy app and Depop, the fashion-focused marketplace the company owns, which could translate to upside in gross merchandise sales (GMS) for the quarter.
Kelley noted that Etsy continues efforts to drive traffic to its main app and that the company initiated a marketing push for Depop in the fourth quarter. Those user-acquisition dynamics underpin the potential for revenue improvement, yet Stifel elected not to adjust its estimates and implemented only a modest reduction to its price target, from $65 to $62.
Capital allocation and governance changes
In addition to analyst activity, Etsy announced a new $750 million share repurchase authorization. Combined with an estimated remaining capacity of more than $200 million under the company's existing authorization, that provides Etsy with nearly $1 billion available for future buybacks. The increased repurchase capacity emerges as the firm prepares for a governance transition.
Effective January 1, 2026, Fred Wilson will assume the role of Lead Independent Director. At the same time, Kruti Patel Goyal will take over as CEO and Josh Silverman will move into the Executive Chair position. These board and management changes occur as investors and analysts focus on the company's fourth-quarter 2025 financial results.
Other analyst views and recent operating results
Truist Securities reiterated a Buy rating on Etsy ahead of the coming quarter, expecting gains in gross merchandise sales and revenue growth despite flat active buyer counts. BNP Paribas Exane initiated coverage with a Neutral rating and a $60 price target, describing Etsy as a distinctive online marketplace. Cantor Fitzgerald maintained a Neutral stance with a $64 price target after Etsy's third-quarter results beat prior expectations.
Etsy's third-quarter report showed gross merchandise sales and EBITDA that exceeded earlier estimates, while core marketplace GMS fell 2% year-over-year. That decline represented an improvement from a 5% drop in the second quarter. Depop, meanwhile, recorded accelerated growth of 39%.
Implications
Stifel's modest price-target reduction paired with unchanged estimates signals a measured view: the broker recognizes improving user metrics and the company's expanded buyback capacity but remains cautious on valuation near-term. The combination of operating progress on user engagement and increased shareholder-return capacity will be key focus areas for investors as Etsy reports fourth-quarter 2025 results.