On Tuesday, Bark Inc. (NYSE:BARK) received an upgrade in its stock rating by Jefferies from Hold to Buy. Accompanying the upgrade, the firm also increased the price target for Bark's shares to $1.90, up from the previous $1.54. This adjustment reflects a more optimistic outlook for the company as it prepares for fiscal year 2025 (F25).
The upgrade was based on the anticipation of improved top-line growth, profitability, and margin visibility for Bark as it enters F25. Jefferies highlighted the company's favorable position, which is expected to drive Bark towards achieving full-year adjusted EBITDA and earnings per share (EPS) profitability by F25 and F26, respectively.
The firm's analyst cited the changes in Bark's outlook since their initial assessment, noting the company's promising set-up for the upcoming fiscal year. The enhanced financial forecasts and the perceived balance of potential risks and rewards were key factors in the decision to upgrade the stock to a Buy rating.
The raised price target of $1.90 suggests that Jefferies sees potential for Bark's stock value to increase from its previous target. This new target is a vote of confidence in the company's strategic initiatives and its ability to deliver on profitability metrics in the near future.
Investors may consider this rating change and price target adjustment as indicators of Bark's potential performance in the market. The upgrade to a Buy rating, in particular, signals a positive shift in the firm's view of Bark's investment prospects as the company moves towards its F25 goals.
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