Oppenheimer Upgrades Etsy To Outperform, Sees 21% Upside

According to CNBC, Oppenheimer upgraded Etsy to outperform from perform and set a $90 price target on the online marketplace, implying 21% upside from Monday's close. Analyst Jason Helfstein said the move reflects expected benefits from AI search, product improvements, and stronger app engagement and conversion. Oppenheimer said consumers are relying less on Google Search for online shopping and are increasingly using AI tools for product discovery, based on a recent survey. Adobe Analytics data also showed that nearly half of U.S. consumers used AI for online shopping in June. Oppenheimer now forecasts a 5% increase in gross merchandise sales growth over the next two years, even as Etsy loses ground in the online handmade market. The firm also said its poll showed consumers have noticed improvements in Etsy's product listings and descriptions, which should make discovery easier and support more sales on the platform. Shares of Etsy have risen 24% year to date and gained 2% in premarket trading after the upgrade.