Needham & Company Downgrades The RealReal Inc. (REAL) to Hold

Needham & Company analyst Rick Patel downgraded The RealReal Inc. (NASDAQ: REAL) from Buy to Hold.

The analyst commented, "With visibility being lower, we move to a Hold rating and remove REAL from Needham's Conviction List. We have been and continue to be bullish on the online secondhand market as consumers embrace value, sustainability, digital and the treasure hunt experience – all of these benefit REAL. However, we also believe that Covid-19 presents new hurdles: 1) luxury is highly discretionary and the consumer is under pressure; 2) procuring supply could become challenging due to social distancing (50% of consignor products come from in-home pickup); 3) we anticipate heightened online discounting in the coming months as traditional retailers purge inventories following store closures, which could hurt REAL’s AOV; and 4) it's an uncertain time and REAL needs strong revenue growth to leverage expenses and narrow losses."

For an analyst ratings summary and ratings history on The RealReal Inc. click here. For more ratings news on The RealReal Inc. click here.

Shares of The RealReal Inc. closed at $7.56 yesterday.

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