Wolfe Research upgraded shares of Etsy , saying the one-time pandemic darling down nearly 50% this year is ready for a sizeable comeback. “There are plenty of (near term) uncertainties due to weakening macro, but we see many paths for shares to outperform over the next 12-18 months,” Wolfe analyst Deepak Mathivanan wrote in a note dated Wednesday about the online seller of homemade items. The firm raised its rating on Etsy to outperform from peer perform and set a $100 price target, representing more than 54% upside over the next 12 months. ETSY 5Y mountain Etsy – 5 years Etsy shares are down 46% so far in 2023 and about 80% from their pandemic high as inflation crimped consumers’ wallets and investors dumped growth stocks in the wake of higher interest rates. Wolfe gave three reasons why the stock could rebound: a recovery in consumer spending with the improving economy, margin improvement potential and a better focus on its core franchise. “Our scenario analysis suggests that there are several paths for ETSY to reach over $850m in EBITDA in FY24,” the note stated.