Etsy stock gains as Needham raises price target to $85, citing strong Q1 growth and mobile app momentum.

Needham upgraded Etsy's outlook after the company's strong first-quarter results, raising the price target from $65 to $85. The firm highlighted Etsy's marketplace growth, which offset the loss from Depop, driven by improved product execution and technology investments like AI and mobile app engagement. Etsy's mobile app now accounts for nearly 50% of gross merchandise sales and grew 11.2% year-over-year, boosting overall marketplace performance. Needham also noted potential for share buybacks using Depop sale proceeds, though risks remain from competition and consumer spending.