William Blair analyst Dylan Carden has maintained their bullish stance on TDUP stock, giving a Buy rating today.
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Dylan Carden’s rating is based on a combination of factors that indicate a positive outlook for thredUP’s future performance. The company has shown a notable acceleration in demand trends, particularly starting mid-May, which suggests potential upside for the upcoming quarter. This increase in demand is attributed to the company’s strategic focus following the sale of its Remix business, allowing thredUP to concentrate on targeted customer acquisition and enhanced engagement tools.
Furthermore, thredUP’s shares have experienced significant gains over the past six months, and while the current valuation may present challenges, the company is positioned for continued growth. The valuation is supported by a discounted cash flow model that assumes sustained top-line growth and a path to achieving its long-term EBITDA margin target. Despite valuation concerns, Carden sees deep value in thredUP’s competitive advantages within the consolidating resale market, with potential for further growth and improved unit economics.
In another report released today, Telsey Advisory also maintained a Buy rating on the stock with a $9.00 price target.