Jefferies lowers Bark Inc. stock price target to $3 from $4

On Thursday, Jefferies analysts adjusted their outlook for Bark Inc. (NYSE: BARK), reducing the price target to $3.00 from the previous $4.00 while keeping a Buy rating for the stock. Currently trading at $1.35, the stock sits below the analysts’ consensus target range of $2.00 to $4.00. According to InvestingPro analysis, BARK appears undervalued based on its Fair Value calculation. Although the company faced challenges from tariffs and consumer macroeconomic conditions, it benefited from significant cost savings, maintaining impressive gross profit margins of 62.19%. The company’s strong financial position is evidenced by its healthy current ratio of 1.63, indicating sufficient liquidity to meet short-term obligations.

The analysts noted that Bark’s portfolio is not expected to grow in the fiscal year 2026, as no guidance was provided. However, they highlighted a strategic shift towards non-discretionary categories and ongoing cost-saving measures as positive long-term factors for the company. The Commerce segment is seen as having a substantial growth potential, and the Direct-to-Consumer (DTC) segment is anticipated to return to growth in fiscal year 2027. InvestingPro subscribers have access to 12 additional key insights about BARK’s financial health and growth potential, along with comprehensive analysis in the Pro Research Report.

In light of the current macroeconomic pressures, Jefferies analysts have adjusted their fiscal year 2026-2028 estimates for Bark. Despite these challenges, they have maintained a Buy rating, reflecting confidence in the company’s long-term strategic adjustments.

The report emphasizes Bark’s efforts to navigate economic headwinds and leverage strategic initiatives to position itself for future growth. Investors are advised to consider these factors when evaluating Bark’s stock performance and potential.

In other recent news, Bark Inc. announced its fiscal fourth-quarter earnings for 2025, revealing a mixed performance. The company reported its first-ever positive adjusted EBITDA for both the quarter and the full year, with Q4 adjusted EBITDA at $5.2 million and $5.4 million for the year. However, revenue fell short of expectations, coming in at $115.4 million against a forecast of $126.78 million. This shortfall was attributed to tariff-related challenges and a reduction in marketing expenses. Analysts from Canaccord Genuity adjusted their outlook on Bark Inc., reducing the stock price target to $2.00 from $2.50 while maintaining a Hold rating due to ongoing tariff-related headwinds and consumer spending softness. Looking ahead, Bark anticipates a revenue decline of approximately 14% year-over-year in Q1, with revenue guidance between $99 million and $101 million. The company plans to diversify its revenue streams by expanding beyond subscription boxes and entering new markets such as consumables. Despite these challenges, Bark’s gross margin reached a record high of 63.6% in Q4, indicating improved operational efficiency.

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