Solo Brands resumed with an Outperform at William Blair

William Blair analyst Phillip Blee initiated coverage of Solo Brands with an Outperform rating and no price target. While the immediate reaction was negative on concerns of near-term volatility, the secondary offering will be a longer-term positive for the stock on the exit of two of the larger private equity owners and increasing the float available to long-term shareholders, the analyst tells investors in a research note. The firm views Solo Brands as undervalued compared to high-growth peers given the company’s “strong customer engagement, healthy free cash flow, and a model with proven, sustainable profitability.”