RealReal Inc (REAL) Receives a Buy from Stifel Nicolaus

By Ryan Adsit

Stifel Nicolaus analyst Scott Devitt maintained a Buy rating on RealReal Inc (REALResearch Report) yesterday and set a price target of $30. The company’s shares closed last Monday at $17, close to its 52-week low of $16.34.

Devitt wrote:

“We are increasing our GMV / revenue growth expectations and modestly raising our FY:19 adj. EBITDA forecast. We remain Buy rated with a $30 PT. Key Points GMV and revenue above expectations: GMV growth of 40% y/y was above our forecast of 38% growth. Active buyer growth increased 40% y/y to 492.4K, above our expectation of 486.8K. TTM GMV per active buyer increased 1.2% y/y in the quarter, following a 2.1% increase in 1Q, and GMV from repeat buyers increased to 83.1% (up slightly from 82.9% a year ago). Total revenue of $71.0mm (51% y/y growth) was modestly above consensus expectations of $70.1mm (49% y/y growth). Consignment and Service revenue increased 44% y/y to $60.7mm (versus our $60.1mm estimate) driven by a healthy take rate of 36.6% (up 100bps y/y).”

According to TipRanks.com, Devitt is a top 100 analyst with an average return of 20.5% and a 66.2% success rate. Devitt covers the Technology sector, focusing on stocks such as Uber Technologies Inc, Eventbrite Inc, and Alphabet Inc.

Currently, the analyst consensus on RealReal Inc is a Moderate Buy with an average price target of $30.20.

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Based on RealReal Inc’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $23.22 million. In comparison, last year the company had a GAAP net loss of $14.11 million.

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The RealReal, Inc. is an online luxury consignment site, which engages in the consignment of luxury goods across multiple categories, including women’s, men’s, kids’, jewelry, and watches, and home and art. The firm sells pieces from designers such as Cartier, Chanel, Christian Louboutin, Gucci, Hermès, Louis Vuitton, Prada, Rolex, Tiffany & Co., and Valentino. The company was founded by Julie Wainwright and Marcy Carmack in March 2011 and is headquartered in San Francisco, CA.