What Happened?

Shares of secondhand luxury marketplace The RealReal (NASDAQ: REAL) jumped 6.2% in the morning session after B. Riley Securities raised its price target on the stock and reiterated its 'Buy' rating. 

The investment firm increased its price target to $12.00 from $9.00, representing a significant 33.33% boost and signaling strong confidence in the online luxury consignment company's future performance. This positive analyst sentiment comes as the broader second-hand luxury market shows signs of robust growth.

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What Is The Market Telling Us

The RealReal’s shares are extremely volatile and have had 68 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 4 days ago when the stock gained 4.1% on the news that BTIG raised its price target on the luxury consignment retailer to $11.00 from $9.00 while maintaining a Buy rating. 

The firm's decision followed a positive survey of approximately 750 customers, which bolstered confidence in the company's competitive position. The survey revealed that over 80% of respondents identified The RealReal as one of their top two most-used sites for purchasing second-hand luxury items. 

Additionally, future shopping intentions appear strong, with more than 60% of participants planning to shop on the platform at least monthly over the next year. This optimistic view is supported by broader industry trends, as a study from ThreadUp.com forecasts the U.S. secondhand market will grow to $73 billion by 2028, reflecting a consumer shift toward value and sustainability.

The RealReal is up 1.6% since the beginning of the year, but at $10.00 per share, it is still trading 10.6% below its 52-week high of $11.18 from December 2024. Investors who bought $1,000 worth of The RealReal’s shares 5 years ago would now be looking at an investment worth $605.90.

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