William Blair analyst Dylan Carden has maintained their bullish stance on SVV stock, giving a Buy rating on July 22.
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Dylan Carden has given his Buy rating due to a combination of factors that suggest Savers Value Village Inc. is poised for growth. The company has shown promising results in its first quarter, surpassing both revenue and earnings expectations, which has generated early optimism among investors. Carden notes that the company is likely to continue this trend in the upcoming quarters, aided by favorable comparisons in international markets and positive online search trends.
Carden also highlights the potential for Savers Value Village to meet or exceed earnings expectations, as current projections may underestimate the company’s gross margin improvements while overestimating operating costs. The stock’s valuation, based on future earnings estimates, appears attractive, and the company’s growth prospects are supported by its potential to expand its store base significantly. While there are risks, particularly in meeting early expectations, the long-term growth opportunities in the specialty retail sector make the stock a compelling buy.
Carden covers the Consumer Cyclical sector, focusing on stocks such as Boot Barn, National Vision Holdings, and Chewy. According to TipRanks, Carden has an average return of 23.3% and a 62.07% success rate on recommended stocks.
In another report released on July 22, Loop Capital Markets also reiterated a Buy rating on the stock with a $15.00 price target.