William Blair analyst Dylan Carden has maintained their bullish stance on TDUP stock, giving a Buy rating on October 30.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Dylan Carden has given his Buy rating due to a combination of factors that highlight thredUP’s strong performance and strategic advantages. The company reported third-quarter results that surpassed expectations, driven by effective marketing strategies, significant new buyer growth, and enhancements to both product offerings and customer experience. These improvements have led to better sales and allowed thredUP to optimize its operating expenses, resulting in a notable improvement in adjusted EBITDA, despite increased costs associated with acquiring new customers.
Furthermore, thredUP has raised its full-year revenue guidance, demonstrating management’s commitment to reinvest earnings into marketing and processing to support ongoing demand. The company’s ability to leverage AI for personalized customer experiences, such as tailored daily edits and trend reports, sets it apart from competitors. This technological edge, combined with a vast and rapidly turning inventory, positions thredUP advantageously in the market. While there are some concerns about potential distractions from expanding direct business operations, these efforts are expected to complement the core consignment business, further enhancing thredUP’s competitive position.
Carden covers the Consumer Cyclical sector, focusing on stocks such as Ulta Beauty, Revolve Group, and thredUP. According to TipRanks, Carden has an average return of 17.1% and a 58.41% success rate on recommended stocks.
In another report released on October 30, Roth MKM also initiated coverage with a Buy rating on the stock with a $11.00 price target.