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 influencing Brilliant Earth Group’s performance. The company is expected to see mid- to high-single-digit revenue growth in the latter half of the year, aided by easier comparisons and growth in showrooms and fine jewelry sales. However, there is skepticism about the company’s ability to meet these expectations, as previous forecasts for a second-half recovery were not met.
Furthermore, while there are positive trends in engagement ring sales and bookings for wedding and anniversary bands, concerns remain about the company’s gross margin potential and the disconnect between square footage and sales growth. The valuation reflects skepticism about these issues, compounded by high marketing expenses and limited liquidity. Despite efforts to pay down debt and a favorable position regarding tariffs, the need for sustained investor confidence in the long-term outlook poses a significant risk to the stock’s sentiment.
According to TipRanks, Carden is a 4-star analyst with an average return of 16.6% and a 61.19% success rate. Carden covers the Consumer Cyclical sector, focusing on stocks such as thredUP, Savers Value Village Inc., and Abercrombie Fitch.
In another report released today, Telsey Advisory also maintained a Hold rating on the stock with a $2.00 price target.