The RealReal stock price target raised to $10.50 from $8.00 at UBS

Investing.com - UBS raised its price target on The RealReal Inc. (NASDAQ:REAL) to $10.50 from $8.00 while maintaining a Neutral rating on the stock. The luxury consignment retailer, with a market capitalization of $1.19 billion and impressive gross profit margins of nearly 75%, appears overvalued according to InvestingPro Fair Value analysis.

The firm noted that its checks suggest third-quarter sales trends continued to gain momentum for the luxury consignment retailer, but believes this positive performance is already reflected in the current stock price.

UBS pointed out that The RealReal stock has risen 61% since the company’s second-quarter earnings report, significantly outperforming the S&P 500’s 4% increase during the same period.

The investment bank forecasts third-quarter earnings per share of -$0.07 for The RealReal, in line with the consensus Street estimate, and expects the company to maintain its fiscal year 2025 guidance unchanged.

UBS anticipates less volatility than the 17.4% move currently priced into the options market for the earnings announcement, compared to the historical average move of 15.5%.

In other recent news, The RealReal Inc. reported its Q2 2025 earnings, showcasing a smaller-than-expected loss and surpassing revenue forecasts. The company posted an earnings per share of -$0.06, which was better than the anticipated -$0.09, and reported revenue of $165 million, exceeding the expected $159.61 million. These results reflect positively on the company’s financial performance. Following these developments, BTIG raised its price target for The RealReal to $11 from $9, maintaining a Buy rating. This upgrade was based on a survey of 750 customers regarding their luxury resale preferences and future shopping intentions. UBS also increased its price target for the company to $8 from $7, citing an improved outlook after the second-quarter results exceeded expectations for revenue, gross margin, and adjusted EBITDA. UBS continues to hold a Neutral rating on the stock. These recent developments indicate a positive trend for The RealReal in the luxury consignment market.

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