Wedbush Analysts Upgrade Etsy To Neutral From Underperform

Wedbush analysts upgraded Etsy Inc. to neutral from underperform Tuesday, citing improved valuation. The analysts said they believe Etsy growth will slow down due to frustrated sellers and declining yields on marketing spend. "We believe the company is pursuing short-term boosts at the expense of long-term results," the analysts said. But because shares of Etsy have already dropped 65% in the past six months and 20% in the past three weeks, the analysts say that risk is already reflected in the share price. In the third quarter, the analysts believe Etsy can maintain its revenue growth trajectory due to more marketing, leading to more site traffic. The analysts maintained their $9 price target.