Etsy is securing more sales as it continues turning around its marketplace business — a fact that could drive more upside to its shares over the next year or so, according to JPMorgan. The bank upgraded the online marketplace to overweight from neutral. It also hiked its price target on shares to $100 from $85, suggesting nearly 22% upside from Thursday's close. "Etsy Marketplace [gross merchandise sales (GMS)] has grown [year-over-year] for three consecutive quarters…and we believe the company is well-positioned for sustainable growth as marketplace fundamentals improve & social commerce initiatives yield returns," analyst Bryan Smilek said Thursday in a note to clients. The analyst's call comes after Etsy reported its latest earnings on Wednesday. Etsy posted adjusted EBITDA of $195.3 million for the second quarter, or well above the $182.1 million expected by analysts polled by FactSet. It also clocked $668.3 million in revenue for the same period, topping the Street's consensus estimate of $646.1 million. The company also forecasted that its gross merchandise sales would grow by mid-single-digit percentage points for the full year, marking an upward revision of its previous forecast. That would add to recent sales momentum recorded by the e-commerce platform, which has seen its GMS growth rise from 0.1% in the fourth quarter of 2025 to 7.5% in the second quarter of this year, per JPMorgan. Etsy's push to promote greater sales through its search, app and customer loyalty initiatives are also "driving active buyer acquisition, engagement, and retention, while also improving the active seller ecosystem," analyst Smilek wrote. That, in turn, could translate to more durable GMS growth for Etsy into the second half of this year and all of next year, he added. JPMorgan's call goes against consensus on Wall Street. Of the 31 analysts covering Etsy, just 11 have a buy or strong buy on the stock. Shares have jumped 48% year to date.