Shares of Etsy Inc. fell 1.9% in premarket trading Monday, after KeyBanc analyst Edward Yruma backed away from his long-time bullish call on the online crafts marketplace, citing valuation and a lower near-term likelihood of positive earnings revisions. Yruma downgraded Etsy to sector weight, after being at overweight since October 2017. He said after outperforming the broader market by a wide margin since his upgrade, valuation looks “fair” and current consensus analyst expectations look “reasonable.” “We believe that Etsy remains one of the best long-term growth opportunities in our coverage,” Yruma wrote in a note to clients. “However, we move to Sector Weight given what we view as a fair valuation and lower likelihood of near-term earnings beats.” The stock has soared 224.2% over the past 12 months through Friday, while the Nasdaq Composite has climbed 62.3% and the S&P 500 has advanced 47.4%.
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