Investors should consider buying into Etsy , as the stock could see big gains going forward, according to JMP Securities. Analyst Nicholas Jones initiated coverage of Etsy with a market outperform rating, saying in a Wednesday note that the e-commerce company is attracting more repeat buyers during the pandemic. “ETSY’s platform has been one of the top performers throughout and exiting the pandemic,” Jones wrote. “We view its increase in brand awareness as lasting as opposed to transitory and see plenty of opportunity for ETSY to continue driving GMV growth through further improvement of brand awareness, geographic expansion, and technology investments.” JMP assigned a price target of $125, which is 54% higher than where shares closed Tuesday. The firm see challenges ahead for e-commerce because of rising inflationary pressures and the possibility of a recession that could hurt Etsy and its peers. In the near term, analysts also expect consumers will spend more on travel and experiences than on goods sourced online. Still, it said Etsy is early in a sector with a massive total addressable market, especially as shoppers develop a preference for custom-made goods. According to JMP’s analysis, Etsy will control 8% of a $300 billion total addressable market by 2025. While JMP’s TAM estimates are lower than Etsy’s, they believe the company has “plenty of runway” to gain share. “Overall, we see ETSY as structurally benefiting from pandemic conditions, going from less top-of-mind to one of the more top-of-mind platforms for E-commerce,” Jones said. “While potentially more muted near term, as consumers spend their disposable income on travel and offline, we look for ETSY to continue converting active buyers to repeat and habitual buyers over the medium term.” —CNBC’s Michael Bloom contributed to this report.