Analyst Jay Sole of UBS maintained a Hold rating on RealReal, boosting the price target to $14.00.
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Jay Sole has given his Hold rating due to a combination of factors. The RealReal’s third-quarter performance exceeded expectations with significant growth in sales and adjusted EBITDA, indicating that the company’s strategies to enhance supply and operational efficiency are effective. However, despite these positive results, Sole believes that the current stock price already reflects the anticipated strong growth, suggesting limited potential for further upside.
Additionally, there are concerns about the sustainability of RealReal’s double-digit sales growth. While current sales trends are robust, they may be influenced by temporary macroeconomic conditions, such as consumers’ increased willingness to sell goods amid economic uncertainty. If these macro factors normalize, RealReal might face challenges in maintaining its current growth trajectory, leading to a balanced risk-reward scenario for the stock.
In another report released on November 7, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $11.00 price target.
Based on the recent corporate insider activity of 53 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of REAL in relation to earlier this year.