Could Etsy Stock Hit $200 in 2023?
Etsy (NASDAQ: ETSY) posted revenue of $594.5 million and adjusted earnings per share (EPS) of $0.58 in its 2022 third quarter, and both numbers beat what Wall Street analysts were forecasting. What's more, management's guidance for Q4 was well-received, and shares moved higher following the news. Investor optimism surrounding the business has been renewed.
As of this writing, Etsy's stock trades just north of $125. A $200 price target one year from now implies a gain of 60%, which would crush the S&P 500's historical average return of about 10% per year. But is this a realistic scenario? Let's take a closer look.
Right now, Etsy's stock is selling at a price-to-earnings (P/E) ratio of 36, which is about half its average valuation over the past five years. If we assume that this multiple stays the same 12 months from now, in order for the stock to reach $200, Etsy's EPS needs to rise by 60% in 2023 compared to 2022.
Source Fool.com
