Solo Brands initiated with neutral view at B. Riley, here’s why

B. Riley analyst Anna Glaessgen initiated coverage of Solo Brands with a Neutral rating and $5.50 price target. The analyst likes Solo’s “early-innings growth” with just 6% unaided brand awareness and high-teens EBITDA margin profile, but believes the key catalyst to an upward sentiment shift will hinge on positive inflection in the direct-to-consumer channel. Additionally, with a new CFO likely joining ahead of the Q4 earnings release, the firm thinks the company’s’ initial 2024 guidance may be set conservatively.