RealReal falls as Cowen downgrades on 'bumpy' path to profitability

Realreal

12/08/2022 16:48

** Shares in online marketplace for luxury goods RealReal
 REAL.O  slide 9.2% to $2.87 as brokerage Cowen downgrades stock
to "market perform" from "outperform"
    ** Revenue growth volatility brought on by a consumer shift
to lower-priced apparel and shoes and labor shortages in back
half of the year cloud visibility to longer term goals of 2024
profitability, Cowen analyst Oliver Chen writes in a note
    ** RealReal in February projected it would report core
earnings for 2024
    ** Chen adds RealReal's high commission fee of 36.1% may
force consumers to consider other resale platforms, including 
Rebag, Fashionphile, eBay  EBAY.O , Tradesy, and Watchbox
    ** Cowen also slashes price target to $3 from $14
    ** RealReal on Tuesday lowered its revenue forecast for 2022
 urn:newsml:reuters.com:*:nL4N2ZM2X5
    ** Average rating is "buy"; median PT is $4.50, down 50%
from a month ago - Refinitiv
    ** RealReal shares have fallen 75% this year

 (Reporting by Praveen Paramasivam in Bengaluru)
 ((Praveen.Paramasivam@thomsonreuters.com;))