Aterian initiated with a Buy at Craig-Hallum

Craig-Hallum analyst Alex Fuhrman initiated coverage of Aterian (ATER) with a Buy rating and $3 price target. Aterian has been successfully implementing a turnaround over the past three years, but sky-high container costs have hidden this progress, the firm says. Craig-Hallum also highlights that Aterian has built a strong technology-enabled consumer products business over the past few years, inflecting to positive adjusted EBITDA in 2020 after years of losses. Its proprietary AIMEE commerce operating system helped the company to identify underserved corners of the Amazon (AMZN) ecosystem and informed efficient M&A and new product launches in these areas, the firm adds. Craig-Hallum also believes that falling container costs position the company for profitability in the second half of 2023.