Over the course of the pandemic, and now the Ukraine conflict, weaknesses within the supply chain were exposed. Brick-and-mortar retail was devastated. On the other hand, internet retailers suffered some but largely weathered the storm. With some weaknesses abating, one analyst believes that there very well could be an upswing for everyone who survived the market carnage—a lot of these survivors are internet retailers.
JMP Securities recently issued a few calls on internet retailers. Although these stocks have been beaten up over the past few months, this firm suggests a couple are due for a turnaround, while the rest may be languishing for the time being.
Nicholas Jones, JMP’s lead analyst on the call, was sanguine on a couple of the big names within the industry, but some smaller names could be facing market headwinds.
It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
JMP Securities believes Poshmark Inc. (NASDAQ: POSH) is well positioned to benefit from consumer base “which is saddled with more debt and is likely more cost conscious.” However, considering its relatively slower revenue growth and lower profitability relative to the peer group, shares appear fairly valued and could see better than expected profitability which would move shares higher from here. JMP Securities downgraded the stock to a Market Perform rating from Outperform.
The 52-week trading range is $8.97 to $52.39, and shares traded at $11.44 most recently. The stock is down about 38% year to date.
The Etsy Inc. (NASDAQ: ETSY) platform has been one of the top performers throughout and exiting the pandemic, according to a research note from the firm. Jones views its increase in brand awareness “as lasting as opposed to transitory” and sees plenty of opportunity for the company to continue driving volume growth. As a result, JMP Securities resumed coverage with an Outperform rating and a $125 price target, implying upside of 54% from the most recent closing price of $81.12.
Etsy stock closed at $87.29, in a 52-week trading range of $68.40 to $307.75. Shares are down nearly 63% year to date.
On eBay Inc. (NASDAQ: EBAY), JMP Securities resumed coverage with a Market Perform rating. Jones views eBay’s strategic focus on enthusiasts and focus categories favorably, but he looks for near-term trends at the company to begin moving toward its long-term vision to become more positive on the name. Currently, shares appear fairly valued at current levels.
The 52-week trading range is $43.28 to $81.19, and shares closed at $47.77 on Thursday. It has a dividend yield of 1.9%. Shares are down about 29% year to date.
1stdibs.com Inc. (NASDAQ: DIBS) is in the early days of transitioning to a higher consideration segment online, and its current sales growth and profitability profile likely will weigh on its valuation near term. Jones looks for improved margins and stronger top-line growth to become more constructive on the name. He sees the shares as fairly valued. As a result, JMP Securities resumed coverage with a Market Perform rating.
The stock closed at $5.85, and it has a 52-week trading range of $4.77 to $35.46. The stock is down 56% year to date.
JMP Securities resumed coverage of Amazon.com Inc. (NASDAQ: AMZN) with an Outperform rating, but it cut the $3,600 price target to $3,450. That still implies upside of 37% from the most recent closing price of $2,510.22. In the note, Jones said that, though near-term e-commerce pressures likely will impact Amazon, the company is well positioned to navigate inflationary headwinds and is likely to show resilience through a potential recession.
The stock has a 52-week trading range of $2,025.20 to $3,773.08 and is down about 27% year to date.
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