Shares of vintage and hand-crafted e-commerce marketplace Etsy (ETSY) - Get Report gained on Friday after RBC raised its rating on the stock to outperform from sector perform, citing the company's free shipping offer as well as more recent advertising push, which it says is helping generate sales.
Shares of Etsy were up more than 2%, or $1.25 a share, at $60.32 in early trading on Friday after RBC analyst Shweta Khajuria raised her rating and also increased her one-year price target to $68 from $63.
The company's efforts as well as its recent acquisition of new and used music gear marketplace Reverb likely wil have a positive effect on its bottom line and help it beat Wall Street estimates in fiscal 2020 and 2021, Khajuria wrote in a research note to clients.
"While there may be some near-term risk in quarterly results in H2:19, we view risk-reward as attractive," said Khajuria.
Analysts polled by FactSet are, on average, currently expecting Etsy to earn 98 cents a share in fiscal 2020, on revenue of $992.8 million.
Etsy has fallen 19% since closing at a record in March. The company went public in April 2015 at a price of $16 a share.