Barclays has upgraded Etsy to Overweight from Equal Weight, raising its price target to $72 from $62, citing two pivotal developments: the pending sale of Depop and signs of stabilization in the company's core marketplace. The investment bank views the Depop divestiture as a positive step that will refocus attention on Etsy's primary platform and potentially lift EBITDA estimates.

Fourth-quarter results showed gross merchandise sales of $3.593 billion, up 1% excluding foreign exchange and Reverb, while revenue rose 7% to $882 million. Although slightly below consensus, adjusted EBITDA came in $6 million ahead of expectations. The company reported its first year-over-year growth in reported gross merchandise sales in more than two years, with declines narrowing to 1%. Management has committed to positive year-over-year growth for every quarter in 2026.

Barclays expects the Depop sale to generate approximately $1.2 billion in cash, which could support accelerated share buybacks. The brokerage forecasts low single-digit reported growth for Etsy's core platform in 2026, accelerating modestly in 2027 and 2028, with an EBITDA margin of just over 28% in 2026. At about 8x its 2027 EBITDA estimate, Barclays argues the valuation is not stretched.