Etsy Stock Climbs After BTIG Upgrade Cites Improved Valuation

Shares of Etsy (NASDAQ: ETSY) rose 1.5% in pre-open trading Monday after analysts at BTIG upgraded the stock to Buy from a previous Neutral rating, establishing a $90 price target.

Back-to-Back Analyst Upgrades

BTIG's upgrade is predicated on an improved valuation for the e-commerce company. The firm argued that a recent pullback in the stock's price has erased a premium it previously held compared to its peers, creating a more favorable risk-reward profile with roughly 24% potential upside, according to the note. The action reverses BTIG's prior downgrade in July, which was driven primarily by valuation concerns.

The move follows closely on the heels of another bullish call. On September 15, Oppenheimer also upgraded Etsy to Outperform with an identical $90 price target. Oppenheimer's positive outlook was based on expected benefits from AI search enhancements, ongoing product improvements, and strengthening user engagement on the company's mobile app.

Fundamental Performance Supports Outlook

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The renewed analyst confidence is underpinned by Etsy's solid recent business performance. The company's second-quarter 2026 results showed several positive trends:

• Gross merchandise sales (GMS) grew 7.5% year-over-year to $2.6 billion, the third consecutive quarter of accelerating growth.
• Earnings per share of $0.98 beat consensus analyst estimates by approximately 31%.

Oppenheimer's proprietary web traffic analysis also suggested that buyer trends were stabilizing in the third quarter, potentially allowing Etsy to reach the high end of its GMS guidance. Additionally, the company recently authorized a $2 billion share repurchase program, signaling management's confidence in its core marketplace strategy following the sale of its Depop subsidiary.