Wedbush bullish on Poshmark, ThredUp as young shoppers eye second-hand apparel

ThredUp

05/10/2021 18:46

** Shares of online resale platform  TDUP.O  jump ~7% to
$21.04, while peer Poshmark  POSH.O  rises over 1% to $23.91 
    ** Brokerage Wedbush initiates coverage of TDUP, POSH at
"outperform"
    ** Sets TDUP's PT at $25, implying an upside of 27.4% to
stock's last close; starts on POSH with a PT of $32
    ** Says TDUP, POSH to benefit from consumer shift to
eco-friendly ways of shopping as well as disposal of old
clothing
    ** Adds the digital nature of both businesses and their
focus on value-priced clothing to drive growth in the long run
    ** Notes POSH's "social network" experience, which allows
buyers to follow and interact with sellers unlike TDUP, helps
boost customer loyalty at POSH
    ** Current avg rating on both TDUP and POSH is "buy"
    ** With Tuesday's gains, POSH is down ~43% from its Jan IPO
price, while TDUP is up ~51% from its March IPO price

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