William Blair analyst Dylan Carden has maintained their bullish stance on SVV stock, giving a Buy rating on October 15.
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Dylan Carden has given his Buy rating due to a combination of factors that suggest a favorable outlook for Savers Value Village Inc. The company has shown strong performance with both top- and bottom-line beats in the second quarter, and the trends indicate that it may continue to meet or exceed expectations in the upcoming quarters. This is supported by easier comparisons in international markets and sustained demand momentum.
Additionally, the long-term growth potential is promising, with plans for significant store expansion from the current 171 stores in the U.S. The potential to grow to over 2,000 stores is seen as reasonable, especially when compared to the number of Goodwill and Salvation Army locations. The company’s business model, which focuses on local product sourcing through donations, makes it less vulnerable to tariffs, providing a stable earnings outlook. Furthermore, the valuation is supported by expected 30% earnings growth over 2026 and 2027, despite some risks related to management credibility and volatility in the Canadian market.
In another report released on October 15, BTIG also initiated coverage with a Buy rating on the stock with a $18.00 price target.