Berenberg says 'buy' Poshmark as Gen Z turns to secondhand apparel

ThredUp

28/09/2021 16:20

** Shares of online resale platforms Poshmark  POSH.O  up
~2% at $24.45, while Thredup  TDUP.O  falls ~3% to $20.43 – set
to snap five straight sessions of gains
    ** Brokerage Berenberg initiates coverage on POSH with
'buy'; sets PT at $42, implying an ~75% upside to last close
    ** Starts ThredUp  TDUP.O  coverage with a 'hold' rating at
a PT of $21, below median PT of $32 
    ** Says companies to benefit from consumer shift to
secondhand apparel, but TDUP's primarily Gen X and baby boomer
audience might hamper its growth in long term
    ** Gen Z and millennials are typically more environmentally
responsible and drive the resale market, brokerage adds
    ** POSH's peer-to-peer resale model and free shipping, which
it rolled out in April, to drive growth - Berenberg 
    ** Current avg rating on both POSH and TDUP is "buy"; POSH
has a median PT of $43 
    ** As of last close, POSH is down ~43% from its Jan IPO
price, while TDUP is up ~50% from its March IPO price

 (Reporting by Deborah Sophia in Bengaluru)
 ((DeborahMary.Sophia@thomsonreuters.com;))