The stock ended up $1.39, or 9%, at $16.65. It's dropped about 50% since last month’s initial public offering.
KeyBanc Capital Markets rates ThredUp as overweight, with a price target of $22. Its size “makes the competitive environment more benign vs. the luxury consignment/resale space,” KeyBanc analysts wrote in a commentary, Bloomberg reports.
They said the company has an attractive valuation, given its ability to grow margins and sales.
Piper Sandler rates ThredUp as overweight, with a price target of $20. The company’s valuation looks “particularly compelling,” Piper analysts wrote, according to Bloomberg. They said ThredUp can increase revenue in the mid- to high-20% range in coming years.
Telsey Advisory Group rates ThredUp as outperform, also with a price target of $20. The company’s platform can expand, boosting margins, Telsey analysts said, according to Bloomberg.
They said it has created "a logistical competitive moat in the large and fastest growing segment of apparel retailing."
William Blair rates ThredUp as outperform, and Morgan Stanley rates it as equal weight with a $16 price target.
ThredUp stock soared on its first day of trading March 26. It raised $168 million at a valuation of about $1.3 billion.
The company will use the proceeds to expand its business, including adding new categories and investing further in its operating platform and technology, according to its S-1 filing with the Securities and Exchange Commission.