Craig-Hallum bullish on Savers Value Village, initiates with a Buy

As previously reported, Craig-Hallum analyst Jeremy Hamblin initiated coverage of Savers Value Village (SVV) with a Buy rating and $19 price target The firm notes Savers is the largest for-profit, secondhand goods retailer set to grow its store base 7 times over the coming decades with growth focused on the U.S. market where they are under-penetrated. Craig-Hallum highlights that the FY25 EBITDA drag from new store openings is finally understood and set to flip to a tailwind. The firm cites the company’s technological investment and superior scale as creating clear competitive advantages. Furthermore, Craig-Hallum also highlights an attractive financial model with high gross margin and mid-teen’s EBITDA margins that are the best in extreme value with upside to the mid $20’s and downside to $8.50.