Poshmark Inc POSH is the best-positioned company in the market for resale apparel, given its “asset-light business model,” which supports healthy long-term margins and allows for “rapid expansion in new markets with minimal expected capex,” according to Stifel.
The Poshmark Analyst: Scott Devitt upgraded the rating for Poshmark from Hold to Buy, while maintaining a price target of $50.
The Poshmark Thesis: The current valuation of the company’s stock offers an “opportunistic entry point for a platform benefiting from several global and secular market trends,” Devitt said in the upgrade note.
He mentioned the growth of e-commerce in the apparel and resale categories, the shift among consumers to secondhand and environmentally conscious purchases, and the rising adoption of social e-commerce should “continue to expand the size of Poshmark’s addressable market.”
“Additionally, we see a favorable near-term setup for Poshmark as the company returns to pre-pandemic levels of marketing spend against an improving recovery in domestic apparel demand,” the analyst further wrote.
POSH Price Action: Shares of Poshmark are down 0.76% to $41.64 Tuesday at publication.
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