TheRealReal Inc. (REAL:NSD) Robert W Baird lowers the target price to $6

STA Research
by: STA Research

Robert W Baird maintains TheRealReal Inc. with an Outperform rating and lowers the target price to $6 from $12 on the company’s stock.

Based on the TheRealReal Inc stock forecasts from 13 analysts, the average analyst target price for TheRealReal Inc is USD 7.83 over the next 12 months. TheRealReal Inc’s average analyst rating is Buy . Stock Target Advisor’s own stock analysis of TheRealReal Inc is Slightly Bearish, which is based on 3 positive signals and 5 negative signals. At the last closing, TheRealReal Inc’s stock price was USD 3.06TheRealReal Inc’s stock price has changed by -6.71% over the past week, -40.12% over the past month and -82.82% over the last year.

The RealReal, Inc. operates an online marketplace for consigned luxury goods in the United State. It offers various product categories, including women’s, men’s, kids’, jewelry and watches, and home and art products. The company was incorporated in 2011 and is headquartered in San Francisco, California.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Underpriced compared to earnings

The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

What we don’t like:

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Negative cashflow

The company had negative total cash flow in the most recent four quarters.

 

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