Rosenblatt Securities opened formal coverage of three publicly traded e-commerce companies on Wednesday, issuing Buy recommendations for Etsy and eBay and a Neutral rating for Chewy as investors balance evidence of stronger execution against a backdrop of slower market expansion.
Etsy
The brokerage initiated Etsy with a Buy rating and a $95 price target. Rosenblatt said the marketplace appears to have reached an inflection point after four straight quarters of improving gross merchandise sales. It pointed to the sale of Depop for $1.4 billion as having refocused management on Etsy’s higher-margin core operations, and it noted that adjusted EBITDA margin reached 29.2% in the first half of 2026. In addition, Etsy announced a $2 billion share repurchase program.
Rosenblatt’s 2026 projections call for Etsy marketplace GMS to increase 5.5% to $11 billion, with revenue of $2.8 billion and adjusted EBITDA of $840 million. The firm highlighted more than 100 million lapsed buyers as a reactivation opportunity, and it identified integrations with ChatGPT and Google’s Universal Commerce Protocol as potential enhancers of AI-led product discovery.
eBay
eBay was also started with a Buy rating and a $120 price target. Rosenblatt pointed to a pronounced acceleration in eBay’s turnaround, citing a 15% year-over-year rise in second-quarter GMV. The brokerage broke down that focus categories, consumer-to-consumer sales and recommerce together accounted for roughly 70% of GMV, with each of those segments growing more than 20%. Focus categories alone expanded 26%.
Rosenblatt expects eBay’s advertising arm to supply another stream of high-margin expansion after reporting first-party ads up 25% in the second quarter and total advertising comprising 2.7% of GMV. The firm also highlighted AI-driven listing tools, the eBay Live initiative and the $1.4 billion acquisition of Depop as additional potential growth drivers.
For 2026, Rosenblatt projects eBay GMV of $90.1 billion, an increase of 13.2%, revenue of $12.5 billion and non-GAAP EPS of $6.18, a year-over-year rise of 12%. The brokerage further expects non-GAAP EPS to grow at a 17% compound annual rate over the next three years.
Chewy
Chewy received a Neutral rating with a $25 price target. Rosenblatt described Chewy as a high-quality operator that continues to take share as pet spending moves online, but the firm said the company’s current valuation already reflects improving execution and leaves limited upside to core-business estimates.
The brokerage noted that Autoship, which represented 84.4% of sales in the first quarter, supports recurring revenue and bolsters customer retention. Rosenblatt also cited Vet Care, equine health and sponsored advertising as potential sources of higher-margin growth. On margins, Rosenblatt expects adjusted EBITDA to rise from 6.7% in 2026 to about 7.9% in 2028, and it forecast AI-driven logistics savings exceeding $50 million annually by 2027.
Takeaway
Rosenblatt’s initial coverage frames Etsy and eBay as beneficiaries of improving execution, structural initiatives and AI-related enhancements, while Chewy is positioned as a steady operator whose valuation already prices much of the progress. The firm supplied explicit top-line and margin forecasts for 2026 and beyond for each company.
Context and next steps
Investors will likely weigh Rosenblatt’s detailed forecasts and margin assumptions against broader market growth rates and company execution when assessing these recommendations. The coverage provides targets and assumptions to monitor in upcoming quarterly reports and strategic updates.