In a research report released Tuesday, Brean Capital analyst Tom Forte maintained a Buy rating on shares of Etsy Inc (NASDAQ:ETSY) with a $23 price target, after the company indicated in its blog that it was expanding its third-party manufacturing efforts.

Forte observed, “We view the announcement as building on its prior efforts to enable sellers on its platform to work with approved small-batch manufacturers to produce more items and increase their scale. If successful in this initiative, we believe there could be upside to our 2016 sales forecast, due to the company’s ability to empower its sellers to move more merchandise. We consider the shares attractive at current levels and recommend investors purchase shares, and we, therefore, reiterate our Buy rating.”

“That said, we recognize the risk Etsy bears when it comes to increasing the production of its sellers. If the sellers become too successful and are perceived as mass producing their merchandise, it may tarnish the seller and the Etsy brand. We will continue to monitor the company’s efforts in this balancing act,” 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 -26.2% and a 10.4% success rate. Forte has a -22.1% average return when recommending ETSY, and is ranked #3749 out of 3757 analysts.

Etsy shares are up 2.02% to $14.67 as of 12:19PM EDT. Out of the 4 analysts polled by TipRanks, one rates ETSY a Buy, 2 rate the stock a Hold and 1 recommends a Sell. With a return potential of 17%, the stock’s consensus target price stands at $17.

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