a.k.a. Brands price target lowered to $20 from $22 at Telsey Advisory

Telsey Advisory lowered the firm’s price target on a.k.a. Brands to $20 from $22 and keeps a Market Perform rating on the shares. The company delivered a second top- and bottom-line beat to start FY24 driven by strength in the U.S., healthy gross margin expansion, and better expense leverage, the analyst tells investors. Additionally, in the long term, the firm believes the company’s brands can return to growth, driven by newness and continued active customer growth, but visibility remains constrained.