Etsy Initiated By Loop Capital, Says Amazon Handmade Business To Have Minimal Impact

While stating that Etsy Inc (NASDAQ: ETSY) seems to have “significant opportunity” to drive revenue growth, Loop Capital Markets’ Blake Harper said in a report that Handmade at Amazon.com, Inc. (NASDAQ: AMZN) is unlikely to pose “a detrimental competitive threat.” The analyst initiated coverage of Etsy with a Hold rating and a price target of $14.

Etsy has significant opportunity to boost revenue growth by expanding its number of buyers and its services to sellers.

Impact of Amazon Handmade

Amazon Handmade is unlikely to prove to be a “detrimental competitive threat,” since Etsy has 70 times more product listings, and only the largest volume sellers appear to have moved to Amazon's platform, analyst Harper mentioned.

“We believe Etsy will continue to be an important sales channel for many small business owners who produce crafts and handmade goods, although they will increasingly have other options online,” Harper wrote.

The company would need to focus on converting more mobile visits to transactions and on improving its mobile search, discovery and payments processes in order to achieve GMS and revenue growth.

“We are positive on the business in the short to medium term but believe upside to estimates is already priced in with the stock,” the analyst added.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!