Needham analyst Bernie McTernan has reiterated their neutral stance on TDUP stock, giving a Hold rating on July 22.
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Bernie McTernan has given his Hold rating due to a combination of factors, including thredUP’s recent performance and future growth potential. The company’s second-quarter results exceeded expectations, prompting an upward revision of revenue and adjusted EBITDA estimates for 2025. However, the main question remains whether 2025 represents a peak or just a milestone in thredUP’s growth trajectory.
McTernan’s model suggests that future EBITDA growth will be driven primarily by margin expansion. While there is potential for positive revisions if revenue deceleration in 2026 is less severe than anticipated, the current high valuation of the stock requires more confidence in sustaining high revenue growth rates. Despite this, thredUP’s ongoing improvements, particularly in product conversion, enhance the likelihood of maintaining strong revenue growth, justifying the Hold rating.
McTernan covers the Consumer Cyclical sector, focusing on stocks such as Flutter Entertainment PLC, Super Group (SGHC), and thredUP. According to TipRanks, McTernan has an average return of 8.0% and a 51.90% success rate on recommended stocks.
In another report released on July 22, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $9.00 price target.