UBS raises The RealReal stock price target to $8 on improved outlook

Published 08/08/2025, 12:24
UBS raises The RealReal stock price target to $8 on improved outlook

Investing.com - UBS raised its price target on The RealReal Inc. (NASDAQ:REAL) to $8.00 from $7.00 while maintaining a Neutral rating on the stock. The company’s stock, currently trading at $5.51, has shown significant volatility with a 52-week range of $2.24 to $11.38.

The price target increase follows The RealReal’s second-quarter results, which exceeded expectations for revenue, gross margin, and adjusted EBITDA. InvestingPro data shows impressive gross profit margins of 74.63%, with revenue growing at 11.89% over the last twelve months.

The luxury consignment company also raised its fiscal year 2025 EBITDA outlook by 22% at the midpoint, demonstrating improved financial performance.

UBS cited increased confidence in The RealReal’s ability to generate quality supply and drive operational efficiencies, leading the firm to raise its sales outlook and boost its operating margin forecast.

Despite the improved outlook, UBS maintained its Neutral rating, noting it doesn’t currently see a catalyst that would drive the stock price beyond the new $8 price target.

In other recent news, TheRealReal Inc . announced its Q2 2025 earnings, reporting a smaller-than-expected loss and surpassing revenue forecasts. The company achieved an earnings per share (EPS) of -$0.06, which was better than the anticipated -$0.09. Revenue for the quarter reached $165 million, exceeding the forecasted $159.61 million. These results indicate positive momentum for TheRealReal, as the company continues to outperform analyst expectations. The earnings announcement comes amid a period of heightened interest in the company’s financial performance. Analysts are closely monitoring TheRealReal’s ability to sustain this trend in upcoming quarters. The company’s recent performance may influence future evaluations by financial analysts. These developments highlight the importance of keeping an eye on TheRealReal’s ongoing financial strategies and outcomes.

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