Etsy (ETSY) is benefiting from artificial intelligence search integration, product improvements and better app engagement, Oppenheimer said in a Monday note.

Third-party data from SimilarWeb implies Q3 non-app buyers were flat year over year compared with a 3% decline in Q2, suggesting the high end of gross merchandise sales guidance is achievable, the investment firm said.

A survey of 2,500 US consumers indicated that 88% of buyers went directly to Etsy's website or app rather than Google Search, demonstrating a strong competitive moat and less dependence on search engines, Oppenheimer said.

The firm increased its 2026 and 2027 gross merchandise sales estimates by 1% and projected 5% growth in 2027 and 2028.

Oppenheimer upgraded Etsy to outperform from perform and set a $90 price target.

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