2023-03-10 12:45:10 ET
A.k.a Brands Holding Corp. ( NYSE: AKA ) stock slid over 30% on Friday as Piper Sandler pulled in its rating on the San Francisco-based online fashion company.
The company surprised analysts on Thrusday evening by posting a significant loss per share against a consensus estimate of one cent in earnings per share. Additionally, revenue declined over 18% year over year to fall well short of the Street consensus as well.
The surprising loss and limited visibility on an inflection into 2023 prompted Piper Sandler analyst Edward Yruma to remove his bullish rating on the stock.
“We previously remained Overweight because we saw value in the brand on an [sum of parts] basis, and still believe that the brands present significant value relative to the current EV of the business,” he told clients on Friday. “However, operating results are likely to remain challenged for the foreseeable future, hence our downgrade.”
He trimmed his price target to $2 from a prior $3 alongside the downgrade. Shares of a.k.a Brands ( AKA ) fell 31.53% in Friday afternoon trading.
Read more on the details of the earnings report .
For further details see:
a.k.a Brands slumps over 30% as Piper Sandler steps to sidelines