Poshmark stock gains after Barclays turns bullish
Shares of Poshmark Inc. (POSH) were rising more than 5% in premarket trading Monday after Barclays analyst Trevor Young assumed coverage of the fashion-marketplace stock and lifted Barclays' rating on the name to overweight from equal weight. "Admittedly, POSH isn't out of the woods yet on navigating ad-targeting post IDFA [Apple's privacy-related changes to ad tracking], and marketing continues to ramp as a % of revenue, pressuring Ebitda [earnings before interest, taxes, depreciation and amortization] back into negative territory," Young wrote, but he sees positives in the business as well. He liked that Poshmark continues to grow its base of active buyers and looks well positioned to benefit from "secular tailwinds to second-hand" purchases, including "as consumers trade-down in a softer macro." Young noted that Poshmark "has combined social and game-like features into its platform that keep customers engaged with the platform daily." He has a $17 price target on the stock, which has dropped 58% over the past 12 months as the S&P 500 has fallen about 4%.
(END) Dow Jones Newswires
August 15, 2022 09:01 ET (13:01 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.