BMO Capital initiates Pattern Group stock with Outperform rating on AI capabilities

Published 14/10/2025, 10:58
BMO Capital initiates Pattern Group stock with Outperform rating on AI capabilities

Investing.com - BMO Capital initiated coverage on Pattern Group Inc (NASDAQ:PTRN) with an Outperform rating and a price target of $19.00 on Tuesday. According to InvestingPro data, the company currently trades at a P/E ratio of 24.6x and maintains strong financial health with a current ratio of 2.28x.

The research firm identified Pattern Group as a technology platform that optimizes eCommerce products on global marketplaces by leveraging proprietary AI and over 46 trillion eCommerce datapoints.

BMO Capital noted that Pattern Group has scaled to become the largest third-party seller on Amazon, which accounts for over 90% of its revenue.

The company is projected to generate $2.4 billion in revenue for 2025, representing a 33% three-year compound annual growth rate from 2022 to 2025.

Despite Pattern Group’s business model resulting in structurally low gross margins similar to retailers, BMO Capital views the company as a technology and data company rather than a traditional retail operation.

In other recent news, Pattern Group has caught the attention of several investment firms, with multiple analysts initiating coverage of the company’s stock. William Blair has given Pattern Group an Outperform rating, citing the expansive e-commerce market as a favorable environment for the company. Similarly, Baird initiated coverage with an Outperform rating and set a price target of $18.00, noting Pattern Group’s emerging leadership in assisting brands on platforms like Amazon. Goldman Sachs also initiated coverage, giving a Buy rating and a price target of $17.00, emphasizing the company’s potential to scale in the global e-commerce market. Stifel provided a Buy rating with a price target of $18.00, highlighting Pattern Group’s strong brand retention metrics. JPMorgan joined the list by initiating coverage with an Overweight rating and a price target of $18.00, pointing out the company’s use of technology and expertise to enhance online sales for brand partners. These recent developments suggest growing confidence among analysts in Pattern Group’s position within the e-commerce sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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