William Blair analyst Dylan Carden has maintained their neutral stance on BRLT stock, giving a Hold rating yesterday.
Dylan Carden has given his Hold rating due to a combination of factors affecting Brilliant Earth Group. One of the primary considerations is the company’s marketing spending relative to its sales performance. Although there was an improvement in marketing leverage in the fourth quarter, the overall sales decline and the potential risks associated with marketing adjustments remain concerns.
Additionally, while management has shown optimism with guidance suggesting stability and momentum into 2025, the expectations are heavily weighted towards the latter half of the year. This, coupled with a challenging macroeconomic environment, suggests that the market is likely to wait for more concrete signs of top-line improvement. The current valuation reflects skepticism and liquidity issues, and while there is potential for growth, the uncertain macro backdrop and recent trends in lab diamond pricing pose significant risks.
In another report released yesterday, TD Cowen also maintained a Hold rating on the stock with a $2.00 price target.