Truist Securities Downgrades aka Brands Holding Corp (AKA) to Hold Following Softer Results

(Updated - March 8, 2024 7:54 AM EST)

Truist Securities analyst Youssef Suali downgraded aka Brands Holding Corp (NYSE: AKA) from Buy to Hold with a price target of $10.00 (from $12.00).

The analyst commented, "Softer than expected 4Q results and the FY24 guide reflect a tough macro environment in Australia and operational challenges. That said, growth in the US (largest mkt) has improved to the DDs %, buoyed by improvements across all key brands. Improving inventory turnover and lower capex/Opex are driving positive FCF, helping AKA pay down debt and strengthen its BS. Mgmt's efforts to freshen up its offering & expand into wholesale/omnichannel should help re-accelerate growth but not likely until FY25, moving us to the sidelines. Our PT goes to $10 from $12. AKA holds a portfolio of online fashion brands targeting millennials/Gen Zers."

For an analyst ratings summary and ratings history on aka Brands Holding Corp click here. For more ratings news on aka Brands Holding Corp click here.

Shares of aka Brands Holding Corp closed at $11.93 yesterday.

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