Rover ( NASDAQ: ROVR ) shares are likely range-bound, according to Goldman Sachs.
The bank told clients on Friday that the online pet marketplace is showing strong inroads into the booming pet care business, but will likely be challenged by a market downturn.
“Against a growing user base, Rover is collecting millions of monthly data points created through pet parent and service providers interactions, which informs its matching technology and customer experience, to disrupt the fragmented pet services market,” an initiation note advised. “Looking forward, we see investor debates about the platform's business performance in a period of post-pandemic environment (demand & supply normalizing) as being measured against a mixture of broader macroeconomic environment and potential for competition.”
Given the balanced debate, the stock was initiated at “Neutral” with a $4.50 price target. Shares of the Seattle-based online platform fell slightly before Friday’s market open.
Read more about the competition coming from Wag .
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Rover likely to stay as growing user base meets macroeconomic uncertainty