RealReal’s Robust Growth and Strategic Initiatives Drive Buy Rating

Wells Fargo analyst Ike Boruchow maintained a Buy rating on RealReal (REAL – Research Report) yesterday and set a price target of $15.00.

Ike Boruchow’s rating is based on the positive trajectory of RealReal’s business model, which has shown significant improvements in both revenue and margin growth. The company has managed to overcome past challenges, achieving an 11% increase in revenue and a 400 basis point improvement in margins, indicating a robust performance amidst a challenging macroeconomic environment. This positions RealReal as a compelling investment opportunity, especially given the limited number of companies achieving double-digit revenue growth without tariff risks.
Furthermore, RealReal’s strategic initiatives, such as the “Get Paid Now” program, have enhanced the profitability of its direct business segment, driving margins to their highest levels. The stabilization of its business model, following structural changes, suggests a more predictable performance going forward, with operational efficiencies contributing to margin scaling. These factors collectively support Ike Boruchow’s Buy rating, highlighting RealReal’s potential for continued growth and profitability.

According to TipRanks, Boruchow is a 4-star analyst with an average return of 2.8% and a 46.98% success rate. Boruchow covers the Consumer Cyclical sector, focusing on stocks such as Kontoor Brands, Capri Holdings, and Skechers USA.