ThredUp Price Target Boosted to $9 by Telsey Advisory

ThredUp's (TDUP) price target has been increased to $9 from $7 by Telsey Advisory, maintaining an Outperform rating. The firm highlights ThredUp's strong position to capitalize on market trends and its potential for long-term growth. However, the company's financial performance is mixed, with declining revenue growth, but improving operating margins. ThredUp's valuation metrics are complex, with a high price-to-sales and price-to-book ratio.

ThredUp Inc. (NASDAQ: TDUP) has seen its price target raised to $9 by Telsey Advisory Group, up from the previous target of $7, while maintaining an Outperform rating. This move reflects the firm's strong performance and potential for long-term growth in the online resale market.

The revised price target is based on ThredUp's robust start to fiscal year 2025, which includes record revenue in the first quarter and impressive gross margins of 79.4%. The company has also reported significant growth in active buyers and new buyers, with a 95% year-over-year increase in new buyers. These strong top-line numbers, despite the company's ongoing unprofitability, have led analysts to raise their price targets.

Telsey's new $9 price target assumes a 3.3x multiple on the firm's two-year forward sales estimate of $315 million. This multiple is broadly in line with the current next-twelve-months multiple of 3.0x. However, the stock appears to be trading above its intrinsic value, according to InvestingPro's Fair Value analysis.

ThredUp's financial performance has been mixed, with declining revenue growth but improving operating margins. The company's valuation metrics are complex, with a high price-to-sales and price-to-book ratio. Despite these challenges, ThredUp's strong position in the online resale market and its ability to capitalize on market trends make it an attractive investment for many analysts.

In other recent news, ThredUp has reported strong financial performance for the first quarter of 2025, exceeding earnings expectations with an EPS of -$0.04 compared to the anticipated -$0.08. The company's revenue also surpassed forecasts, reaching $71.3 million against the expected $65.62 million.

Analysts have also issued various earnings estimates for ThredUp. Northland Capmk expects the company to post earnings of -$0.08 per share for the second quarter of 2025. Other analysts, such as Wall Street Zen and Wells Fargo & Company, have also raised their price targets and ratings on ThredUp shares.

ThredUp's stock performance has been strong, with a market cap of $990.94 million and a PE ratio of -14.45. The company has a high debt-to-equity ratio of 0.31 and a low current ratio of 0.92. Despite these metrics, ThredUp's ability to capitalize on market trends and its strong position in the online resale market make it an attractive investment for many analysts.

References:
[1] https://www.investing.com/news/analyst-ratings/thredup-stock-price-target-raised-to-9-from-7-at-telsey-93CH-4157139
[2] https://www.marketbeat.com/instant-alerts/research-analysts-set-expectations-for-thredup-q2-earnings-2025-07-24/