Benzinga | Jul 8, 2021 10:51AM EDT

Needham Initiates Coverage On Etsy, Sees 30% Upside

* Needham analyst Anna Andreeva initiated coverage of Etsy Inc (NASDAQ:ETSY) with a Buy rating and $250 price target.

* The price target implies an upside of 29.6% at current levels.

* Andreeva considers Etsy as one of the best growth ideas in her coverage. She estimates over 20% gross merchandise sales growth over the long term and the scope to retain the record-high number of new users added to the platform in 2020.

* Andreeva estimates the recent Depop and Elo7 acquisitions to expand the company's total addressable market to include new attractive categories.

* Etsy acquired Depop in June for $1.625 billion. It acquired Elo7 for $217 million later in June.

* The stock gained 72% last year.

* Price action: ETSY shares traded higher by 0.58% at $194.01 on the last check Thursday.