In a report released yesterday, Maria Ripps from Canaccord Genuity maintained a Hold rating on BARK Inc Class A (BARK – Research Report), with a price target of $2.50.
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Maria Ripps’s rating is based on BARK Inc’s recent performance and future outlook. The company’s fiscal Q3 results aligned with expectations, with a slight revenue increase and noticeable improvements in marketing efficiency due to a strategic shift to the Shopify platform. This transition has led to a growth in new subscriptions and improved conversion rates, although the direct-to-consumer (DTC) segment remains under pressure.
While BARK has shown robust growth in its commerce segment, especially with significant revenue increases from partnerships with platforms like Amazon and Chewy, the core DTC business still faces challenges. The company has taken steps to mitigate the impact of tariffs and plans for continued growth, but there is some uncertainty regarding its ability to sustain this momentum. Given these mixed signals, Maria Ripps believes a Hold rating is appropriate, acknowledging potential upside while remaining cautious due to near-term uncertainties.
Based on the recent corporate insider activity of 46 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of BARK in relation to earlier this year.