It's time for red-hot Etsy shares to take a break, KeyBanc says

Published Mon, Apr 26 20215:45 AM EDTUpdated Mon, Apr 26 20216:59 AM EDT

Jesse Pound @/in/jesse-pound @jesserpound

An employee walks past a quilt displaying Etsy Inc. signage at the company's headquarters in the Brooklyn.

Victor J. Blue/Bloomberg via Getty Images

The good news about e-commerce platform Etsy is largely priced in and it's time for the stock to take a breather, according to KeyBanc Capital Markets.

The investment firm downgraded the e-commerce stock to sector weight from overweight, saying the company will have a hard time following up the strong beat of expectations it saw in 2020.