William Blair analyst Dylan Carden has maintained their neutral stance on BRLT stock, giving a Hold rating today.
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Dylan Carden has given his Hold rating due to a combination of factors impacting Brilliant Earth Group’s financial performance. The company reported mixed results for the third quarter, with revenue exceeding expectations but gross margins falling short due to record-high metal prices and tariff pressures. Despite these challenges, the company managed to achieve growth in engagement ring bookings and repeat orders, while maintaining flat marketing expenses.
However, Carden remains cautious due to continued headwinds from rising metal prices and tariffs, which have led to a downward revision in the company’s adjusted EBITDA margin guidance. Although the company has raised its revenue expectations slightly, the potential for further acceleration is uncertain, especially given the volatility in market trends and the pressure on average order values. As a result, Carden projects modest growth and margin improvements, warranting a Hold rating on the stock.
Carden covers the Consumer Cyclical sector, focusing on stocks such as Ulta Beauty, Revolve Group, and National Vision Holdings. According to TipRanks, Carden has an average return of 17.1% and a 58.41% success rate on recommended stocks.
In another report released today, Telsey Advisory also maintained a Hold rating on the stock with a $2.00 price target.