Baird downgraded RealReal to Neutral from Outperform with a price target of $2.75, down from $3.25. With the shares up 61% in 2023, the firm is “taking some chips off the table.” Management has reiterated guidance for EBITDA profitability in 2024 as margin and efficiency initiatives build, but there is a risk that a more meaningful demand deceleration could disrupt the timeline, the analyst tells investors in a research note. The firm says broader luxury e-commerce has faced challenges, and it’s still debatable whether RealReal will benefit from trade-down in a weaker backdrop.
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Read More on REAL:
- Largest borrow rate increases among liquid names
- The RealReal (NASDAQ:REAL) Blasts Up on Earnings Win, Analyst Praise
- RealReal sees FY23 revenue $540 – $55M, consensus $547.46M
- RealReal sees Q4 revenue $ $135M-$145M , consensus $150M
- RealReal reports Q3 EPS (15), consensus (26c)
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