In a research report released Tuesday, Brean Capital analyst Tom Forte maintained a Buy rating on Etsy Inc (NASDAQ:ETSY) with a $23 price target, which represents a potential upside of 35% from where the stock is currently trading. The report comes after the company reported disappointing earnings in its first quarterly report as a public company.

Forte noted, “We fine-tuned our earnings model after reviewing Etsy’s 10Q (filed Friday May 22nd) and after listening to its earnings call from May 19th once again. As part of our effort, we reviewed changes in FX rates for a basket of currencies to improve our understanding of the potential impact of changes in exchange rates to our forecasts, especially for international gross merchandise sales (GMS) and revenue. We also re-examined our forecasts for investments in marketing spending and headcount. Lastly, we reviewed our near-term seller services projections, including the components – promoted listings (advertising), direct checkout (payments), and shipping services (logistics).”

“We also wanted to take the opportunity to discuss sentiment on ETSY, based on our conversations with investors. We continue to believe the shares are compelling at current share prices and recommend investors purchase shares.”, the analyst added.

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Tom Forte has a total average return of -12.0% and a 31.6% success rate. Forte has a -19.8% average return when recommending ETSY, and is ranked #3534 out of 3608 analysts.

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