William Blair analyst Dylan Carden has maintained their bullish stance on TDUP stock, giving a Buy rating on April 30.
Dylan Carden has given his Buy rating due to a combination of factors that highlight thredUP’s strong performance and future potential. The company has demonstrated impressive sales growth driven by more efficient marketing strategies and enhanced customer experiences. This growth has translated into significant SG&A leverage, with EBITDA surpassing expectations by a considerable margin. Additionally, thredUP’s innovative use of AI technology has led to increased customer conversion rates, further bolstering its market position.
Dylan Carden also notes that thredUP is well-positioned to capitalize on current market dynamics, including the potential impact of tariffs and the removal of the de minimis rule affecting fast fashion competitors. These factors could enhance thredUP’s competitive edge, particularly in terms of value proposition. Furthermore, the company’s shares are valued attractively relative to future sales and EBITDA forecasts, suggesting room for continued appreciation. While broader economic concerns such as inflation pose risks, the overall outlook remains positive with current momentum and strategic positioning likely to drive further growth.
In another report released on April 30, Wells Fargo also maintained a Buy rating on the stock with a $6.00 price target.
Based on the recent corporate insider activity of 69 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of TDUP in relation to earlier this year.