Investors should consider buying into Etsy as the stock could see big gains in the future, according to JMP Securities. Analyst Nicholas Jones kicked off Etsy’s coverage with a market outperform rating, saying in a Wednesday note that the e-commerce company is attracting more repeat shoppers during the pandemic. “ETSY’s platform has been one of the most successful throughout and coming out of the pandemic,” Jones wrote. “We view the increase in brand awareness as sustainable rather than transitory and see many opportunities for ETSY to continue to drive GMV growth through further brand awareness enhancement, geographic expansion and technology investments. JMP assigned a price target of $125, which is 54% higher than where the shares closed on Tuesday. The company sees challenges ahead for e-commerce due to rising inflationary pressures and the possibility of a recession that could hurt Etsy and its peers. In the near term, analysts also expect consumers to spend more on travel and experiences than on goods purchased online. Still, he said Etsy was at the start of an industry with a massive total addressable market, especially as shoppers develop a preference for bespoke products. According to JMP’s analysis, Etsy will control 8% of a total $300 billion addressable market by 2025. Although JMP’s TAM estimates are lower than Etsy’s, they believe the company has ” plenty of lead” to gain shares. “Overall, we see ETSY structurally benefiting from pandemic conditions, moving from a lower priority platform to one of the highest priority platforms for e-commerce,” Jones said. “While potentially more muted in the near term, as consumers spend their disposable income on travel and offline, we expect ETSY to continue to convert active shoppers into repeat and habitual shoppers over the medium term.” — CNBC’s Michael Bloom contributed to this report.