The RealReal, Inc. (REALShares rose nearly 4% during pre-market hours on Tuesday after Baird began reporting the stock on outperform at $ 23.00 Price target and Wells Fargo reiterated its overweight rating and increased its price target from $ 20.00 to $ 25.00 per share.
The central theses
- RealReal stock gained during Tuesday’s session after two analysts rated the stock positively.
- The analysts believe that RealReal shares are reasonably discounted and see improvements in the offer and Gross value of goods Trends.
- The stock kept moving in overbought In the field of technical indicators, however, the medium-term trend remains optimistic.
Mark Altschwager, an analyst at Baird, believes that RealReal stocks adequately discount heightened short-term risk factors, which is an attraction Risk / reward profile during a luxury goods recovery. At the same time, Wells Fargo analyst Ike Boruchow sees improvements in supply and gross value developments, and analysts at Piper Sandler said last week that they expect gross sales to accelerate in the second quarter of 2021.
In early December, the company announced a shareholder update that said new buyers were up 24% year over year in November. The number of supplier supply units shipped also increased by 121% year-on-year, which is another sign of good demand despite the pandemic.
From a technical standpoint, the stock rose after a bullish devour On Monday. The Relative Strength Index (RSI) moved into overbought territory at 77.06, but the moving average convergence divergence (MACD) is still on an uptrend. These indicators suggest that the stock may experience some consolidation in the short term before resuming its higher trend.
Gross value of goods (GMV) is the total value of goods that have been sold through a C2C (customer-to-customer) exchange point over a certain period of time. It is a measure of the growth of the business or the use of the website to sell goods that belong to others.
Traders should watch out for any consolidation above previous highs of around $ 18.00. As the stock recovers from these levels, traders should look for a transition to the upper trendline resistance at around $ 21.00. If the stock collapses, traders could see a move to retest the 50-day moving average at $ 14.73, or the trendline support at $ 13.00 although this seems less likely given the fundamental strength.
The bottom line
RealReal stock rose during Tuesday’s session after two analysts rated the stock positively. While the stock moved into overbought territory, the medium-term trend remains bullish.
The author does not hold any position in the stocks mentioned, except through passively managed index funds.