William Blair analyst Dylan Carden has maintained their bullish stance on CURV stock, giving a Buy rating today.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Dylan Carden has given his Buy rating due to a combination of factors that highlight Torrid Holdings’ strategic initiatives and potential for growth. Despite reporting mixed second-quarter results and lowering its full-year outlook, the company is making significant strides with its sub-brand strategies. These sub-brands are gaining traction among both existing and new customers, offering higher product margins and are projected to constitute a substantial portion of Torrid’s business in the coming years. Additionally, the company is exploring innovative retail concepts such as pop-ups and stand-alone stores for these sub-brands, indicating a forward-thinking approach.
Furthermore, Torrid’s decision to close 180 stores and shift focus towards enhancing its digital platform is showing promising results. This strategic move is expected to improve retention rates and drive more customers online, potentially leading to a significant EBITDA margin lift by fiscal 2026. The current stock valuation, trading at 14.4 times the revised 2026 EPS estimate, does not fully capture the company’s earnings potential. With these strategic initiatives underway, there is room for improved margins, free cash flow, and shareholder returns, supporting the Buy rating.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $6.00 price target.
Based on the recent corporate insider activity of 49 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 CURV in relation to earlier this year.