No Change to Standard Capital Allocation for Etsy as Rachana Kumar Steps Into CTO Role

Wide-moat Etsy announced a C-suite shakeup on Oct. 27, with long-time employee Rachana Kumar set to replace Mike Fisher as the firm's chief technology officer. Kumar is a consummate internal hire, having served with Etsy in a variety of roles (most recently as VP of Engineering) since 2014, and we don't expect the move to correspond with any marked shift in strategy. Consequently, we neither expect to move our $180 fair value estimate nor revisit our Standard capital allocation rating on the news. With find shares attractive, trading at a sharp discount (roughly 45%) to our intrinsic valuation.