Written by Carmen Reinicke
Etsy, the online marketplace for crafted and vintage goods, has held its own even as competitors like Amazon edge into its turf.
It’s likely to maintain its lead, according to analysts at Nomura Instinet, who initiated coverage of the company with a “buy” rating and a $70 price target. Shares gained 3.5% on the news Thursday before climbing another 4% on Friday.
“Etsy has proven that the large conglomerate platforms don’t always win, especially when the category is anything but a commodity,” the analysts wrote.
The positive rating is because Etsy has grown consistently amidst an increasingly tough environment for traditional retailers, Nomura said. Etsy has held its own against Amazon as it ramps up competitor Amazon Handmade, and is likely to hold the top spot because of how the platform helps sellers advertise. In addition, it’s been able to succeed while “educating and arming sellers with the right tools to succeed,” Nomura said.
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