Etsy's (ETSY) growth appears more structural, instead of a spike, amid durable execution under CEO Kruti Patel Goyal's leadership, BofA Securities said in a Thursday note.

Goyal has been executing on her growth pillars, evidenced by the inflection in average order value, the investment firm said. Mobile applications gains are leading to richer buyer profiles, backing conversion and customer lifetime value, BofA Securities added.

Etsy is also positioned to ramp capital returns with more than $1 billion of funds from the Depop sale, serving as a tailwind for earnings per share, the brokerage noted.

BofA Securities raised its 2027 non-GAAP EPS forecast for the company to $6.38, compared with the $6.27 Street consensus.

BofA upgraded Etsy to buy from neutral, with a price target of $105, up from $88.

Third-party data suggests conservative guidance and further growth upside, BofA Securities said.

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