BARK, Inc. (BARK) was raised to Buy from Hold at Jefferies on Tuesday, with analysts at the firm also lifting the price target for the stock to $1.90 from $1.54 per share.
Analysts upgraded the stock as the company gears up for F25, and given that the outlook has now changed.
"Bark boasts a favorable set-up going into F25, providing better top-line, profit, and margin visibility," wrote Jefferies.
"We view F25 as an inflection point for Bark's growth," analysts added. "Bark's expansion into treats (reaching +2,400 doors in spring '24 with scope for more), additional marketing reinvestments, and improved customer acquisition capabilities should enable growth (+4-5%) in F25."
Furthermore, Jefferies sees the company's improved top-line and cost visibility paving the way for a clearer road to profitability. "We see Bark reaching full-year Adj. EBITDA and EPS profitability by F25 and F26," noted the firm, highlighting BARK's favorable risk-reward.