In a report released today, Oliver Chen from TD Cowen reiterated a Hold rating on Brilliant Earth Group, with a price target of $1.60.
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Oliver Chen has given his Hold rating due to a combination of factors involving solid brand momentum but pressured profitability. While Brilliant Earth is showing strong growth in fine jewelry and improving demand trends across categories, rising gold and platinum costs, tariff headwinds, and softer guidance for FY26 are expected to weigh on margins and near-term earnings.
Chen notes that management has done well to preserve healthy gross margins through pricing actions and marketing leverage, yet adjusted EBITDA is guided down year over year and early FY26 profitability is expected to be weak. Given a slower path back to historical margin levels and a lower growth profile, he maintains a cautious stance and lowers the price target, concluding that the risk/reward currently supports a Hold rather than a more aggressive rating.
According to TipRanks, Chen is a 4-star analyst with an average return of 4.5% and a 50.80% success rate. Chen covers the Consumer Cyclical sector, focusing on stocks such as LuxExperience, Sally Beauty, and Tapestry.