William Blair analyst Dylan Carden has maintained their bullish stance on TDUP stock, giving a Buy rating on July 29.
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Dylan Carden’s rating is based on thredUP’s recent performance and strategic outlook. The company has exceeded expectations in both revenue and profit margins, demonstrating effective marketing strategies that have led to record levels of new buyer growth and improved customer retention. This momentum is expected to continue, with thredUP providing optimistic revenue guidance for the upcoming quarters, indicating a robust and healthy marketplace.
Dylan Carden also notes that while there is some concern about a softer fourth-quarter revenue outlook, this is attributed to normal seasonal patterns rather than any underlying business weakness. Furthermore, thredUP’s valuation, despite being high, is justified by the company’s ongoing momentum and potential for future earnings growth. The company’s low capital expenditure needs and focus on reinvesting in growth, along with the promising prospects of the resale market, support the Buy rating as thredUP is well-positioned to capitalize on emerging trends in the retail sector.
In another report released on July 29, Telsey Advisory also maintained a Buy rating on the stock with a $9.00 price target.
Based on the recent corporate insider activity of 57 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TDUP in relation to earlier this year.