Wolfe Research analysts upgraded Etsy (NASDAQ:ETSY) from Peerperform to Outperform with a $100.00 price target. Despite a year-to-date decline in Etsy's stock, the analysts see potential for growth recovery in the double digits as macro conditions improve, which could drive high-teens EBITDA growth.

This projection is based on expectations of higher discretionary consumer spending and cost savings, regardless of when the macro conditions improve.

The analysts believe Etsy's shares could trade at a mid-teens EBITDA multiple if growth rates reaccelerate to double digits, alongside margin expansion. Historically, Etsy's multiples averaged around 22x before the COVID pandemic, with growth rates ranging from 15% to 25%.