He has a buy rating and a $150 share-price target on the Brooklyn, N.Y., company.
Etsy’s stock recently traded at $147.07, up 5.4%. It has well more than tripled year to date.
“The pandemic is benefiting Etsy through an uptick in digital demand while also creating a window of opportunity to capture new customers looking to buy masks” to cope with the pandemic, Patel wrote in a commentary cited by Bloomberg.
Etsy, which is 15 years old, began as an arts and crafts store. But now, even masks are part of its inventory. Sales more than doubled in the second quarter from a year earlier.
Demand for masks was “robust in the third quarter, which we believe should benefit Etsy” as it did in the second quarter, Patel said.
Etsy is making “good progress in retaining” new customers who have joined during the pandemic, he said.
Last month, BTIG analyst Marvin Fong upgraded Etsy to buy from neutral with a $138 price target. A drop to that level "brings its valuation into historical range," he said
The analyst called Etsy "one of the fastest growing and best run companies in e-commerce." He said the company's August growth appeared robust.
Meanwhile, Jefferies analyst John Colantuoni has a buy rating and $163 price target on the company.
"Our analysis of traffic and search trends so far in the third quarter suggest Etsy's elevated top-line growth remains unabated," Colantuoni said.
That "[supports] our view that the pandemic has driven a permanent uplift in online consumption, particularly in categories related to home nesting where the company is particularly strong."