RealReal downgraded to Neutral from Outperform at Baird

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.