Wells Fargo analyst Ike Boruchow has maintained their bullish stance on TDUP stock, giving a Buy rating today.
Ike Boruchow’s rating is based on thredUP’s strategic refocus on the US market, which has led to a notable recovery in their business performance. Following the divestment of their European operations, thredUP has shown improved top-line trends, higher margins, and positive free cash flow. The company’s management has effectively executed their strategy, emphasizing marketing efficiency and fresh inventory listings, which are crucial for their near-term success.
Additionally, thredUP is capitalizing on the growing demand for premium ‘bridge brands’ and the potential benefits from tariff exposure, as their second-hand business model is insulated from direct impacts of trade tensions. The company’s strong customer acquisition in the fourth quarter and anticipated continued growth into 2025 further support the Buy rating. These factors, combined with thredUP’s ability to maintain conservative margin expectations while driving demand for higher-quality products, underscore Boruchow’s positive outlook on the stock.