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UPDATE: MKM Partners Assumes Poshmark (POSH) at Neutral

July 27, 2022 4:32 PM EDT
Get Alerts POSH Hot Sheet
Price: $17.80 +1.08%

Rating Summary:
    2 Buy, 12 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 8
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(Updated - July 27, 2022 4:45 PM EDT)

MKM Partners analyst David Bellinger assumes coverage on Poshmark (NASDAQ: POSH) with a Neutral rating and a price target of $11.00.

The analyst comments "We are assuming coverage of Poshmark (POSH) at Neutral and instituting an $11 fair value estimate on the shares (previous rating and price target were Under Review). While we see value and significant earnings potential in the up-and-coming Poshmark platform, a potentially faster pace of investment spend against decelerating top-line growth leaves us on the sidelines. Poshmark’s model is levered to the growing secondhand resale market and operates advantageously without the burden of inventories. The company is now building out its active buyer base as part of a push toward higher order values (following the acquisition of sneaker-authentication platform Suede One) with an attached 20% commission rate on higher AOVs. As investments pick up, we see current Street forecasts around marketing spend as optimistic and expect advertising dollars to march higher in a post-IDFA environment. This dynamic is likely to push out sustained, adjusted EBITDA profitability for some time, in our view."

For an analyst ratings summary and ratings history on Poshmark click here. For more ratings news on Poshmark click here.

Shares of Poshmark closed at $10.11 yesterday.


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