TDUP - ThredUp stock is defended at Needham with shares at all-time low

Needham slashes its price target on ThredUp (TDUP -1.9%) in reaction to slower demand and with spending by the online retailer on investments to support growth still at an elevated level. ThredUp's (TDUP) core mass price consumer is noted to be getting squeezed more for discretionary purchases right now. For the near term, Analyst Anna Andreeva reminded that money losing consumer discretionary businesses that stay in investment mode in the current environment are not attracting investor interest currently, but stayed bullish on the long-term prospects. "Valuation has pulled back from 9x EV/Sales earlier in 2021 to 1.2x currently (vs. our Consumer E-Commerce universe at 1.7x)--we think a premium valuation is warranted given the uniqueness of the company's business model, the potential for ~20% sales growth for years to come, and our expectation for meaningful adjusted EBITDA margin expansion in 2023. Our $10 PT is based on an EV/Sales multiple of

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ThredUp stock is defended at Needham with shares at all-time low