Canaccord Genuity cuts Bark Inc. stock price target to $2.00

On Thursday, Canaccord Genuity analysts adjusted their outlook for Bark Inc. (NYSE: BARK), a $236 million market cap pet products company, reducing the price target to $2.00 from $2.50 while maintaining a Hold rating. The adjustment follows Bark’s mixed fiscal fourth-quarter results, where revenue fell short of expectations, though adjusted EBITDA surpassed forecasts. According to InvestingPro data, the stock shows significant volatility with a beta of 2.02, making it particularly sensitive to market movements.

The revenue shortfall was attributed primarily to tariffs, which led Bark to cut back on marketing expenses and resulted in retail partners reducing their inventory orders. Despite these challenges, InvestingPro data shows the company maintains impressive gross profit margins of 62.2% and holds more cash than debt on its balance sheet. In response, the company outlined strategies to mitigate the impact of tariffs, including diversifying its sourcing and manufacturing outside of China and expanding its product lines and revenue channels away from BarkBox subscriptions.

Looking ahead to fiscal Q1, Bark’s revenue guidance indicates a mid-teens year-over-year decline, reflecting ongoing challenges. However, the company expects adjusted EBITDA to reach breakeven at the midpoint. Due to the current uncertainties, Bark has not provided full-year FY26 guidance but remains focused on maintaining positive adjusted EBITDA throughout the year after achieving this milestone in FY25.

Bark shares have declined over 25% year-to-date and are facing additional pressure in after-hours trading due to reduced forward visibility and revenue challenges. InvestingPro analysis suggests the stock is currently undervalued, with a healthy current ratio of 1.63 indicating strong short-term liquidity. Despite the company’s valuation being less than one times FY26 revenue and its focus on profitability, Canaccord Genuity maintains a Hold rating due to ongoing tariff-related headwinds and softness in consumer discretionary spending. For deeper insights into BARK’s valuation and 10+ additional ProTips, including management’s share buyback activity, check out the comprehensive Pro Research Report available on InvestingPro.

In other recent news, BARK Inc. reported its Q4 2025 earnings, achieving its first-ever positive adjusted EBITDA for both the quarter and the full year, with figures of $5.2 million and $5.4 million, respectively. However, the company fell short of revenue expectations, posting $115.4 million against a forecast of $126.78 million. Despite meeting its EPS forecast of $0.01, the revenue miss has raised investor concerns. BARK’s full-year revenue was $484.2 million, a 1.2% decrease year-over-year. The company plans to diversify its revenue streams, aiming for commerce to constitute one-third of its business in the next two to three years. BARK also announced a strategic shift to accelerate revenue diversification, including the launch of a new consumables line and migration to the Shopify (NASDAQ:SHOP) platform. Analysts have noted these developments, with firms like Canaccord and Lake Street Capital Markets engaging with the company’s strategic moves during the earnings call. The company continues to face challenges such as tariff uncertainties and softening consumer sentiment, which could impact future sales and cost structures.

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