Savers Value Village Inc. (SVV) has received a new Buy rating, initiated by William Blair analyst, Dylan Carden.
Dylan Carden has given his Buy rating due to a combination of factors that highlight the growth potential and competitive positioning of Savers Value Village Inc. The company is poised for significant expansion, with a potential to increase its store count from the current 172 to over 2,000 in the U.S., which suggests a long-term growth trajectory. This expansion, coupled with a unique inventory model, is expected to drive high-single-digit sales growth over the next five years, supported by already strong adjusted EBITDA margins that surpass those of its peers.
Dylan Carden also notes the advantageous position of Savers as the only scaled for-profit thrift retailer in a growing resale market, which is expected to expand at a low-double-digit rate. Despite the market’s online growth trend, Savers faces limited competition, primarily from Goodwill, whose performance varies widely. The current valuation of Savers’ shares at 12 times the 2026 adjusted EPS estimate is considered attractive, especially when compared to other store growers in the softline sector. The valuation reflects some initial challenges post-IPO, but the U.S. segment’s performance exceeds expectations, reinforcing the long-term growth potential.
Carden covers the Consumer Cyclical sector, focusing on stocks such as Abercrombie Fitch, Ross Stores, and Duluth Holdings. According to TipRanks, Carden has an average return of 11.3% and a 46.67% success rate on recommended stocks.