Analyst Marvin Fong from BTIG maintained a Buy rating on RealReal (REAL – Research Report) and increased the price target to $9.00 from $6.75.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Marvin Fong has given his Buy rating due to a combination of factors that reflect a positive outlook for RealReal. The company’s latest preannouncement for the fourth quarter of 2024 showed GMV and Adjusted EBITDA surpassing expectations, with revenue hitting the upper end of projected guidance. Additionally, the guidance for the first quarter of 2025 and the full fiscal year of 2025 also came in above consensus for GMV, bolstering confidence in the company’s growth trajectory.
Furthermore, RealReal’s recent exchange of 2028 Notes for new Convertible Senior Notes is seen as a strategic move that extends its debt maturation timeline while offering a premium to noteholders, effectively managing its financial obligations. The analyst is optimistic about RealReal’s potential to achieve higher incremental margins due to its balanced cost structure, along with the opportunity to benefit from increased tariffs which could enhance the secondary market. These factors, along with the company’s leading market share in the rapidly growing resale sector, support the increased price target to $9, aligning with the e-commerce sector’s valuation benchmarks.