The price target represents a potential 25% upside from the stock's closing price Thursday of $55.82.
The stock was rising 1.3% to $56.56 in trading Friday.
Etsy is set up to gain market share in e-commerce and improve margins thanks to new programs like free shipping and the company's recent acquisition of Reverb. Nomura said that the market hasn't factored in Reverb's impact on Etsy's bottom line.
"Etsy has proven that the large conglomerate platforms don't always win, especially when the category is anything but a commodity," analyst Mark Kelley wrote. "Some of the newly added programs, while very early, are likely to benefit sellers and allow Etsy to improve its margin profile as GMS growth continues."
Etsy shares have risen 18% year to date, but well below their year-to-date high near $73.
Save 57% During Our Fall Sale. Join Jim Cramer's Action Alerts PLUS investment club to become a smarter investor. Click here to sign up and save!