Stifel Downgrades Poshmark (POSH) to Hold
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Stifel analyst Scott Devitt downgraded Poshmark (NASDAQ: POSH) from Buy to Hold with a price target of $15.00 (from $19.00).
The analyst commented, "We are lowering our rating on POSH shares to Hold. While Poshmark has several attractive attributes (asset-light model, 20%+ margin potential, and a highly engaged user base), we are taking a neutral view on shares as the company faces numerous growth challenges that may limit share price appreciation relative to other eCommerce ideas despite its current low statistical valuation. The introduction of Apple’s privacy changes has dampened the effectiveness of the company’s marketing investments, resulting in slower user growth and higher marketing costs. Further, the company’s key growth catalyst—international expansion—is yet to materialize as initial market launches have failed to scale in-line with both management’s expectations and the assumptions underpinning our model. With no clear catalysts and a modest growth outlook, we favor other names within eCommerce relative to POSH, including AMZN, CVNA, EBAY, ETSY, SE, and SHOP."
Shares of Poshmark closed at $13.36 yesterday.
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