MYT Netherlands stock rating upgraded at TD Cowen, target to $14

On Monday, MYT Netherlands shares (NYSE: MYTE) received an upgrade from TD Cowen, shifting from a Hold to a Buy rating. The firm also raised the price target for the company’s stock from $13.00 to $14.00. Currently trading at $10.44, MYTE has demonstrated remarkable performance with a 201.73% return over the past year. The upgrade followed a meeting with MYT Netherlands’ CEO and CFO, which bolstered TD Cowen analysts’ confidence in the company’s financial prospects. According to InvestingPro, the company maintains a FAIR financial health score and shows strong momentum.

TD Cowen’s analysts cited several reasons for the optimistic outlook on MYT Netherlands. Their conviction is rooted in the expected sales and margin performance of the Mytheresa platform, which has achieved 12.41% revenue growth and maintains a healthy 46.44% gross margin. They also anticipate visible gross margin expansion in the second half of the year. Additionally, the pending acquisition of Yoox Net-a-Porter (BIT:YNAP) is seen as a transformative opportunity for MYT Netherlands, with the deal expected to close by June. InvestingPro data reveals 12 additional key insights about MYTE’s financial health and growth potential.

The analysts at TD Cowen projected that over the medium term, MYT Netherlands could achieve an EBITDA of more than €300 million. This forecast is based on the assumption that the company will reach €4 billion in sales with an 8% margin. The upgrade indicates a positive outlook for the company’s financial health and growth potential.

MYT Netherlands’ stock price is expected to be influenced by these factors as the market responds to the upgraded rating and new price target. The company’s strategic moves, including the YNAP acquisition, are anticipated to play a significant role in its future earnings and market performance.

In other recent news, MYT Netherlands Parent (NYSE:MYTE) B.V. has seen significant developments that are capturing investor attention. The company recently announced its acquisition of Yoox Net-a-Porter (YNAP), a move expected to triple its Gross Merchandise Value by mid-2025. This strategic acquisition has led TD Cowen to adjust its outlook on MYTE, raising the stock price target from $8.00 to $11.00 while maintaining a Hold rating. Analyst Oliver Chen of TD Cowen expressed cautious optimism about MYTE’s potential growth in the online luxury market, citing strong brand relationships and robust inventory levels as positive indicators. Chen’s analysis also highlights MYTE’s improved gross margin, which increased by 145 basis points in the first quarter, as a key driver for future stock performance. The analyst projects a second-quarter sales growth of 11.5% and an adjusted EBITDA margin of 4.7%. Additionally, the third-quarter EBITDA estimate has been raised to €10.4 million, reflecting increased confidence in the company’s financial outlook. These developments suggest a promising trajectory for MYTE as it integrates YNAP and seeks to expand its market share.

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