William Blair analyst Dylan Carden has maintained their bullish stance on CURV stock, giving a Buy rating today.
Dylan Carden has given his Buy rating due to a combination of factors that suggest a positive outlook for Torrid Holdings. Under the leadership of CEO Lisa Harper, the company has focused on strengthening its fundamentals, which include enhancing product offerings and improving customer engagement. This strategic direction is expected to support a significant recovery as the company plans to introduce a substantial number of new products and collections, marking the largest influx of newness in recent years.
Furthermore, early indicators show that both new and existing customers are responding positively to these new collections, even during periods of broader economic softness. The company’s decision to close several stores is anticipated to positively impact comparable sales and margins in the future. With shares currently valued at a favorable multiple of the adjusted EBITDA estimate and a strong free cash flow yield, the turnaround strategy appears promising. However, the primary risk remains the potential for a delayed recovery or the new products failing to resonate with consumers in a challenging demand environment.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $7.80 price target.