In a report released yesterday, Brian McNamara from Canaccord Genuity maintained a Buy rating on Solo Brands Inc Class A (DTC – Research Report), with a price target of $3.00.
Brian McNamara has given his Buy rating due to a combination of factors that highlight both challenges and opportunities for Solo Brands Inc Class A. Despite the potential delisting from the NYSE due to the stock’s low trading price, McNamara sees potential in the company’s growth, particularly with its Solo Stove and Chubbies brands. The recent performance of Solo Stove, which exceeded expectations at certain retail locations, suggests a positive outlook for the brand’s in-store presence.
However, McNamara acknowledges the company’s struggles, including the cancellation of the rewards program and leadership changes, which have contributed to a loss of investor confidence. He believes that the company might perform better as a private entity or part of a larger organization. Nonetheless, he remains optimistic that improved Q4 results could naturally elevate the stock price above the $1 threshold, avoiding the need for a reverse stock split and stabilizing the company’s market position.
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