J.P. Morgan starts coverage of Etsy with 'neutral'

Brokerage J.P. Morgan starts coverage on online marketplace Etsy Inc ETSY.O with "neutral" rating and $50 PT, a 12% upside to the stock's last close

Says "ETSY is a leading online marketplace focusing on unique and creative goods" with a "$550 bln estimated core TAM"

Says co's consolidated Gross Merchandise Sales (GMS) declined annually over 2022-24, but believes the trend could improve sequentially throughout 2025

Expects co's "product investments to support improved GMS trends", particularly through "social commerce enhancements led by search/discovery (GenAI/ML), mobile app, and frequency"

ETSY's revenue to grow at a "3% 2024-27 CAGR", with a "take rate expansion" driven by advertising, improved GMS trends, and seller enhancements - brokerage

ETSY fell 32.4% in the last 12 months