Etsy (ETSY, Financial) has announced plans to sell its subsidiary, Reverb Holdings, to Reverb IntermediateCo LLC, a fully owned division of Reverb Partners LLC. The purchasing company is associated with Servco Pacific Inc. and Creator Partners LLC. This decision reflects Etsy's strategy to concentrate on enhancing its primary marketplace and its subsidiary, Depop.
The divestiture aims to harness Reverb Partners LLC's expertise in the music industry, which aligns with Reverb Holdings' mission to support musicians. The transaction is anticipated to be finalized in the next few months, with further details to be disclosed in Etsy’s upcoming quarterly financial report for the period ending March 31.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 29 analysts, the average target price for Etsy Inc (ETSY, Financial) is $54.53 with a high estimate of $92.45 and a low estimate of $35.00. The average target implies an upside of 22.44% from the current price of $44.54. More detailed estimate data can be found on the Etsy Inc (ETSY) Forecast page.
Based on the consensus recommendation from 35 brokerage firms, Etsy Inc's (ETSY, Financial) average brokerage recommendation is currently 2.7, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Etsy Inc (ETSY, Financial) in one year is $91.21, suggesting a upside of 104.78% from the current price of $44.54. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Etsy Inc (ETSY) Summary page.
