MYT Netherlands (MYTE – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Oliver Chen from TD Cowen upgraded the rating on the stock to a Buy and gave it a $14.00 price target.
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Oliver Chen has given his Buy rating due to a combination of factors, including the strong sales and margin performance of the Mytheresa platform and the anticipated benefits from the upcoming YNAP acquisition. The acquisition is expected to be transformative, providing significant opportunities for growth and synergies, with expectations of closing by June. The company is projected to achieve over €300 million in EBITDA with €4 billion in sales over the medium term.
Furthermore, Oliver Chen highlights the consistent management and strategic initiatives that have been in place since the IPO, which are expected to drive the core business forward. The company’s focus on high-value customers and merchandising, particularly in the U.S. market, is seen as a catalyst for further sales growth. Additionally, the potential for gross margin expansion, driven by better inventory positions and full-price selling, adds to the positive outlook. The combination with YNAP is anticipated to enhance scale, supplier relationships, and market exposure, further supporting the Buy rating.