Analyst Ike Boruchow of Wells Fargo maintained a Buy rating on thredUP (TDUP – Research Report), boosting the price target to $7.50.
Ike Boruchow has given his Buy rating due to a combination of factors that highlight thredUP’s strong performance and favorable market conditions. The company reported an impressive first-quarter growth, marking its highest revenue increase in two years and achieving record margins despite significant reinvestment in demand generation. Additionally, thredUP’s decision to raise its full-year guidance reflects confidence in its operational model and future growth prospects.
Moreover, the closure of the de minimus loophole is expected to benefit thredUP by leveling the playing field against value brands that previously offered lower prices. With tariffs potentially increasing apparel costs, thredUP’s U.S.-based inventory positions it advantageously in the market. The company’s strategic investments in customer acquisition have also paid off, as evidenced by a significant year-over-year increase in new buyers, while marketing costs have decreased due to reduced competition from larger advertisers.
TDUP’s price has also changed dramatically for the past six months – from $0.837 to $4.440, which is a 430.47% increase.