Solo Brands Stock Gains As Analysts See Huge Upside To Price Target

Several analysts initiated coverage on Solo Brands Inc DTC with a huge upside on the price target. Solo Brands is a Direct-To-Consumer (DTC) platform that operates four premium outdoor lifestyle brands Solo Stove, Oru, ISLE, and Chubbies apparel.

• Credit Suisse analyst Kaumil Gajrawala initiated coverage with an Outperform rating and $28 price target, implying a 56% upside.
• William Blair analyst Sharon Zackfia initiated coverage with an Outperform rating. The analyst notes Solo's direct-to-consumer platform provides real-time consumer insights that inform its product innovation while enabling a curated brand experience and direct relationship with its customers.
• Jefferies analyst Randal Konik initiated coverage of the company with a Buy rating and $30 price target, implying a 68% upside.
• Konik said the company's portfolio of lifestyle brands, anchored by Solo Stove, is "a natural beneficiary of the Great Outdoor Megatrend in its early innings of growth."
• The analyst sees a significant opportunity for upside to consensus-estimated as well as multiple expansion potential for the shares.
• BofA analyst Robert Ohmes initiated coverage of Solo Brands with a Buy rating and $28 price target. Ohmes believes Solo Stove should benefit from the millennial household formation.
• Ohmes sees a large addressable market opportunity of 76 million detached single-family households in the U.S., where Solo Stove is less than 1% penetrated today.
• Citi analyst Wendy Nicholson initiated coverage with a Neutral rating and $20 price target, implying a 12% upside. The analyst sees favorable industry tailwinds and "lots of whitespace for growth." However, Nicholson thinks the stock is close to fairly valued and that the risk/reward profile looks balanced.
• JPMorgan analyst Christopher Horvers initiated coverage with an Overweight rating and a $27 price target, suggesting a 51% upside. The analyst sees "strong" brand momentum and near-term upside drivers to estimates.
• Piper Sandler analyst Peter Keith initiated coverage with an Overweight rating and $23 price target, suggesting a 29% upside. Keith sees a "long runway for growth" from structural tailwinds in outdoor/backyard activities, growing brand awareness, product innovation, and international expansion.
• Price Action: DTC shares are trading higher by 3.79% at $17.92 on the last check Monday.