Market Overview

Raymond James Upgrades RealReal Ahead Of Q4 Print

Share:
Raymond James Upgrades RealReal Ahead Of Q4 Print

RealReal Inc (NASDAQ: REAL) is scheduled to report fourth-quarter results after the closing bell on Feb 25. Street estimates for the quarter appear conservative, given the company’s continued revenue strength and margin expansion, according to Raymond James.

The Analyst

Raymond James’ Aaron Kessler upgraded RealReal from Market Perform to Outperform while establishing a price target of $21.

The Thesis

RealReal’s near-term fundamental trends seem positive and the company could report fourth-quarter revenue at $94 million, representing 51% year-on-year growth and beating the Street’s expectation of $91 million, Kessler said in the note.

He expects RealReal to post gross merchandise volume of $301 million, up 38% year-on-yea, and net merchandise volume of $217 million, translating to 41% growth.

The analyst cited SimilarWeb traffic data, which indicates a 74% increase in total web visits in December. He added that there could be upside to the fourth-quarter estimate for total buyers, which is at 540,000.

A recent consumer survey by Raymond James showed that RealReal’s brand awareness has almost doubled, which “should continue to drive solid customer/revenue growth as well as more efficient marketing spend,” Kessler wrote.

The analyst also said that the resale market’s trend of shifting online bodes well for RealReal, as it is the leader in the luxury segment.

Price Action

Shares of RealReal were up 6.14% to $15.56 at time of publication Friday.

Related Links

DA Davidson Says The RealReal Will 'Dominate Digital Consignment Space'

Benzinga's Top Upgrades, Downgrades For December 19, 2019

 

Photo by Breno Assis on Unsplash

Latest Ratings for REAL

DateFirmActionFromTo
Apr 2020B. Riley FBRDowngradesBuyNeutral
Apr 2020B. RileyDowngradesBuyNeutral
Mar 2020B. Riley FBRMaintainsBuy

View More Analyst Ratings for REAL
View the Latest Analyst Ratings

 

Related Articles (REAL)

View Comments and Join the Discussion!

Posted-In: Aaron Kessler Raymond JamesAnalyst Color Upgrades Price Target Previews Analyst Ratings Trading Ideas

Latest Ratings

StockFirmActionPT
PECFRAMaintains8.0
HUNCFRAUpgrades16.0
CCCFRADowngrades11.0
VOYAPiper SandlerMaintains58.0
PRUPiper SandlerMaintains64.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com