Etsy's (ETSY) workforce reduction will lead to some margin improvement to help sustain the uptrend in gross merchandise sales, Wedbush said in a Friday research report.
The brokerage said it now expects Q3 EPS of $0.86 on revenue of $669 million, up from prior estimates of $0.74 and $651 million, respectively.
The company is seeing efficiency in its market spend as "richer listings data" shared with Alphabet's (GOOG/GOOGL) Google is enabling competitive bids across auctions, bolstering performance, according to Wedbush.
All GMS growth levers are moving in the right direction, but the setup becomes more complex in H2 as purchase frequency remains below prior-year levels, the analysts said.
Wedbush reiterated its neutral rating and boosted its price target to $88 per share from $80.
Price: $85.43, Change: $+3.16, Percent Change: +3.85%