TD Cowen analyst Oliver Chen has maintained their neutral stance on BRLT stock, giving a Hold rating today.
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Oliver Chen has given his Hold rating due to a combination of factors impacting Brilliant Earth Group. The company has shown positive growth in total orders, particularly in fine jewelry, despite facing challenges such as increased tariffs and higher metal rates. While the company maintained strong gross margins, the lowered guidance for FY25 EBITDA due to these headwinds has contributed to the cautious outlook.
Additionally, although there are positive trends in engagement ring bookings and cultural relevance expansion, the average order value has decreased, reflecting a shift towards more accessible price points. The ongoing promotional activities and increased inventory are expected to support unit growth but may limit average order value and gross margin improvements. Therefore, the Hold rating reflects a balanced view of the company’s current strengths and the challenges it faces in achieving longer-term margin expansion.
In another report released today, Telsey Advisory also maintained a Hold rating on the stock with a $2.00 price target.