Canaccord downgrades Solo Brands after being ‘dead wrong’

Canaccord downgraded Solo Brands (DTC) to Hold from Buy with a price target of $1, down from $3. The firm admits to being “dead wrong” on the stock. While Canaccord still “strongly” believes the underlying assets of Solo Stove and Chubbies are undervalued, it says “stocks can’t work with a revolving door in the C-suite and market confidence lost.” All of the company’s Q4 metrics except for gross margin “significantly” missed expectations and it issued no 2025 guidance due to the “challenging consumer environment and tariff uncertainty,” the analyst tells investors in a research note. The stock on Wednesday is down 63%, or 41c, to 24c.