BMO Capital analyst Brian Pitz reiterated a Buy rating on Pattern Group, Inc. Class A yesterday and set a price target of $22.00.
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Brian Pitz has given his Buy rating due to a combination of factors that highlight Pattern Group’s strong fundamentals and attractive positioning. He points to the company’s exceptional net revenue retention, underpinned by very low brand churn and rising satisfaction scores as brands grow on the platform, as evidence of durable customer relationships and recurring revenue power. He also emphasizes that Pattern’s heavy exposure to the Health and Wellness category is steadily decreasing as the company expands into other high-potential verticals such as beauty, which offer compelling margin profiles and repeat-purchase behavior.
In addition, Pitz notes that Pattern’s contractual structure allows it to pass through higher marketplace seller fees to brand partners, helping preserve and potentially expand margins despite platform cost inflation. He sees meaningful upside from operational improvements, including plans to raise inventory turnover and the ability of existing fulfillment infrastructure to support significantly higher revenue levels. Finally, he frames Pattern as a data- and AI-driven, full-stack eCommerce enablement platform operating against a very large addressable market, and argues that the current valuation, at roughly 10x his 2027 adjusted EBITDA estimate, offers an appealing entry point with room for upside.
In another report released yesterday, TipRanks – OpenAI also upgraded the stock to a Buy with a $15.00 price target.