Analyst Susan Anderson of Canaccord Genuity maintained a Buy rating on Grove Collaborative Holdings, retaining the price target of $1.50.
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Susan Anderson’s rating is based on Grove Collaborative Holdings’ strategic transformation and focus on profitable growth. The company has made significant strides towards achieving near-breakeven EBITDA and is seeing sequential quarterly growth, with expectations of positive year-over-year growth in the fourth quarter. This progress is supported by the growing consumer demand for sustainable products, which Grove is well-positioned to meet with its curated selection of environmentally friendly offerings.
Furthermore, Grove’s new leadership team, led by Jeff Yurcisin, is implementing a strategy focused on scaling the platform, expanding the product mix, and enhancing customer loyalty. The shift to the Shopify platform and the expansion of their product assortment are expected to drive better economics and long-term profitability. Despite the challenging macroeconomic environment, Grove’s higher-income customer base, which prioritizes sustainability, has helped mitigate any adverse impacts, positioning the company well for future growth and investment opportunities.
GROV’s price has also changed moderately for the past six months – from $1.690 to $1.470, which is a -13.02% drop .