William Blair analyst Dylan Carden has maintained their bullish stance on TDUP stock, giving a Buy rating on December 4.
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Dylan Carden’s rating is based on thredUP’s recent performance and strategic initiatives that position the company for growth. The company has demonstrated strong results in the third quarter, surpassing expectations with record new buyer growth and improved EBITDA leverage, even with increased costs for acquiring new customers. This positive performance led to an upward revision of full-year revenue guidance, indicating confidence in continued growth.
Furthermore, thredUP’s enhancements in customer engagement, particularly through the use of AI in search functionalities, have significantly improved the shopping experience. The transition to AI-enabled tagging and search has increased conversion rates by allowing more precise and relevant item discovery. Additional features like shop-by-image and shop-social further enhance the customer experience, making thredUP’s platform more appealing and efficient. These factors contribute to Carden’s Buy rating, reflecting optimism about thredUP’s ability to sustain faster-than-industry growth.
According to TipRanks, Carden is a 5-star analyst with an average return of 19.2% and a 63.28% success rate. Carden covers the Consumer Cyclical sector, focusing on stocks such as Ulta Beauty, National Vision Holdings, and Stitch Fix.
In another report released on December 4, Northland Securities also maintained a Buy rating on the stock with a $14.00 price target.