William Blair analyst Dylan Carden has maintained their bullish stance on SVV stock, giving a Buy rating on April 23.
Dylan Carden has given his Buy rating due to a combination of factors that highlight Savers Value Village Inc.’s strong market position and growth potential. The company has shown positive sales momentum, particularly with its Canadian segment achieving its first positive comparable sales since 2023. This, coupled with sustained U.S. comparable sales at the higher end of long-term targets, suggests a robust performance outlook. Management’s conservative guidance reflects a cautious optimism, with expectations of sequential margin improvement and potential upside from a faster recovery in Canada.
Additionally, Savers’ unique sourcing strategy, which involves procuring products directly from local communities, shields it from tariff risks that other retailers might face. This advantage, along with the company’s ability to maintain a competitive value proposition, positions it well against competitors. The shares are valued at 17 times the revised 2026 EPS estimate, indicating a reasonable valuation with significant store growth potential over the long term. While there are risks associated with broader economic conditions and spending patterns among lower-income customers, the company’s lower average order value (AOV) helps mitigate these risks, allowing continued customer engagement even in challenging economic times.
Carden covers the Consumer Cyclical sector, focusing on stocks such as thredUP, Savers Value Village Inc., and Abercrombie Fitch. According to TipRanks, Carden has an average return of 13.2% and a 52.46% success rate on recommended stocks.
In another report released on April 23, Loop Capital Markets also reiterated a Buy rating on the stock with a $15.00 price target.