Oppenheimer upgraded Etsy to Outperform from Perform and set a $90 price target, implying roughly 21% upside from Monday’s close. The firm said improvements in artificial intelligence-powered search and product discovery are beginning to support user engagement and conversion rates. Etsy shares rose 2.9% in Tuesday’s premarket trading, extending a year-to-date gain of about 34%. Analyst Jason Helfstein based the revised view on SimilarWeb traffic data and a proprietary survey of 2,500 U.S. consumers. The survey found that 88% of buyers accessed Etsy directly through its website or mobile app rather than Google Search, while 65% were very or somewhat likely to purchase on the platform. About 25% noticed improvements in search, product selection or item descriptions. Oppenheimer raised its 2026 gross merchandise sales forecast by 1% to roughly the high end of Street estimates and projects 5% GMS growth in 2027 and 2028. The firm still expects Etsy to lose 117 to 135 basis points of share as the online handmade-goods market expands about 9% annually through 2028. Re-engaging lapsed and prospective buyers remains a challenge, with discounts and product selection the leading reported incentives. The upgrade is more bullish than the broader analyst view, with 20 of 33 LSEG-tracked analysts rating Etsy Hold and 12 recommending Buy or Strong Buy.