UPDATE: BofA Securities Starts Torrid Holdings Inc (CURV) at Buy

(Updated - July 26, 2021 8:06 AM EDT)

BofA Securities analyst, Lorraine Hutchinson, initiates coverage on Torrid Holdings Inc (NYSE: CURV) with a Buy rating and a price target of $32.00 viewing the company as an industry disruptor in the plus size apparel space with a niche on fit and a steady growth trajectory. Torrid is a retailer of apparel, intimates, and accessories for plus-size women, with a target customer between 25-40 years old wearing sizes 10-30.Sales grew at a 23% 5-yr CAGR through 2019, and can support 15% CAGR through F23, translating to a high-teens to low-20s% EPS growth rate.

The analyst stated "Torrid stands out from competitors and other retailers offering extended sizing through its focus on fit and boasts a high digital penetration ahead of peers (70% in 2020, 64% current runrate). Its customer base is loyal and product return rates of 9% are industry-leading. Less than 2% of apparel retailers specialize in plus size, whereas demand for plus size offerings is increasing much more rapidly than that for general apparel, indicating ample opportunity to broaden the brand’s reach within the $85bn US plus size market."

For an analyst ratings summary and ratings history on Torrid Holdings Inc click here. For more ratings news on Torrid Holdings Inc click here.

Shares of Torrid Holdings Inc closed at $22.48 yesterday.

You May Also Be Interested In

• BofA Securities Starts GE Vernova (GEV) at Neutral, 'Multiyear turnaround amid positive demand backdrop'
• Citi Upgrades United Microelectronics Corp (2303:TT) (UMC) to Buy 'with limited downside'
• Bunge (BG) PT Raised to $122 at Citi