Etsy is likely to get a boost from the growing use of artificial intelligence for virtual shopping, according to Oppenheimer. The investment firm upgraded the online marketplace to outperform from perform. It also set a $90 price target on shares, implying 21% upside from Monday’s close. “[We are] upgrading ETSY to outperform (from perform) & establishing $90 target on AI search benefits, product improvements, and app engagement/conversion,” analyst Jason Helfstein said Monday in a note to clients. Consumers are relying less on Google Search for online shopping, instead embracing AI tools for product discovery, according to a recent Oppenheimer survey. Adobe Analytics data also showed that nearly half of U.S. consumers used AI for online shopping in June . That trend should boost Etsy’s sales and translate to upside for its stock, per Helfstein. Oppenheimer now forecasts a 5% increase in gross merchandise sales growth in the next two years, even as Etsy loses ground in the online handmade market. The investment firm’s poll also showed that consumers have noted an improvement in Etsy’s product listings and descriptions, which should make product discovery easier and promote more sales on the platform. Oppenheimer’s call goes against consensus on Wall Street. Of the 33 analysts covering Etsy, 20 have a hold rating on the stock, while just 12 have a buy or strong buy on it, LSEG data shows. Shares have risen 24% year to date.They also gained 2% in the premarket following the upgrade.
