RealReal falls after Credit Suisse downgrades to 'neutral'

Realreal

29/03/2022 11:09

** Shares of secondhand apparel retailer  REAL.O  down 2.8%
at $7.63 in premarket trading
    ** Credit Suisse cuts rating on stock to "neutral" from
"outperform"; lowers PT to $8 from $15
    ** "REAL's path to profitability is significantly longer and
requires much more GMV (gross merchandise value) vs the initial
IPO model to achieve profitability" - Credit Suisse
    ** Adds the potential for unprofitable names like REAL to
need to raise capital in an economic downturn will likely add
macro pressure for the stock in the near term
    ** Avg. rating of 15 analysts is "buy"; median PT is $14 -
Refinitiv data
    ** As of last close, stock had fallen ~32% this year

    

 (Reporting by Tiyashi Datta in Bengaluru)
 ((tiyashi.datta@thomsonreuters.com))