Wells Fargo analyst Ike Boruchow maintained a Buy rating on RealReal (REAL – Research Report) today and set a price target of $15.00.
Ike Boruchow has given his Buy rating due to a combination of factors that highlight RealReal’s strategic positioning and growth potential. The company has shifted its focus from aggressive expansion to a more sustainable and profitable model, emphasizing high-value consignment. This strategic pivot is expected to drive significant revenue growth and improved margins over the next few years, with projections of reaching $875 million in revenue and $125 million in adjusted EBITDA by 2028.
Moreover, RealReal is leveraging AI and automation to enhance operational efficiency, particularly in areas like authentication and pricing, which are expected to reduce lead times and operational costs. The company’s revamped sales team, now more experienced and value-focused, is also contributing to higher returns on investment. Additionally, RealReal’s U.S.-based supply chain positions it favorably against trade tariffs, and its value proposition as a second-hand retailer makes it appealing during economic slowdowns. The company’s improved balance sheet, with reduced debt and extended maturity risk, further supports its financial stability and growth outlook.
Boruchow covers the Consumer Cyclical sector, focusing on stocks such as Capri Holdings, VF, and Tapestry. According to TipRanks, Boruchow has an average return of 0.1% and a 46.88% success rate on recommended stocks.
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