Why The RealReal Stock Fell Today
Shares of digital consignment company The RealReal (NASDAQ: REAL) fell on Friday after an analyst appeared to doubt the vision that management laid out earlier this year. As of 12:45 p.m. ET, The RealReal stock is down 7%, but it was down 12% earlier in the session.
Cowen analyst Oliver Chen downgraded The RealReal stock today in a big way. Previously Chen had a price target of $14 per share, suggesting more than 300% upside from where the stock traded yesterday. However, Chen has now lowered his price target to a measly $3 per share, according to The Fly, citing a "bumpy path to profitability."
Chen's comment appears directly related to The RealReal's "Vision 2025" guidance. In March, the company outlined a path to positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2024. It expects to follow this up in 2025 with adjusted EBITDA of over $100 million.
Source Fool.com
